Private investment firms Searchlight Capital Partners and Abry Partners have acquired IoT connectivity firm KORE for $726m.

The all-cash transaction will cover all the shares of KORE’s issued and outstanding common stock that are not currently owned by them.

“We are pleased to have reached this agreement with Abry and Searchlight, which unlocks significant value for our stockholders at a substantial premium,” said KORE (korewireless.com) CEO Ron Totton. “In addition to delivering immediate value to our stockholders, the partnership with Searchlight and Abry provides KORE with seasoned and strategically aligned investors to accelerate our vision as a private, customer-centric IoT leader. Both firms have an exceptional track record of helping their portfolio companies foster the growth and innovation required to be an industry leader with a loyal and satisfied customer base.”

The members of the KORE board of directors voted unanimously in favour of the transaction at a special meeting by all members present, and was based on the recommendation of a special committee of the board consisting solely of independent directors and advised by independent financial and legal advisors.

“The KORE board explored numerous strategic alternatives and carefully considered the best way to position KORE for long-term success,” said Timothy Donahue, chairman of KORE’s board of directors and of the special committee. “We strongly believe that the transaction with Searchlight and Abry was the best option to position KORE in the IoT marketplace and deliver the highest value to the company’s stockholders.”

Closing of the transaction is conditional upon a vote by KORE shareholders. Upon closing, KORE will operate as a privately-held company. KORE expects the transaction to close during the second or third quarter of this year.

Searchlight (www.searchlightcap.com) is a private investment firm with more than $18bn in assets under management and offices in New York, London, Miami and Toronto. Abry Partners (www.abry.com) is a North American sector-focused private equity investment firm. Since its founding in 1989, the firm has completed over $90bn of leveraged transactions and other private equity or preferred equity placements. Currently, the firm manages $16bn of assets across several fund strategies.