Twilio is selling its IoT business unit to Kore, following a definitive signed agreement between the companies.
As payment, Twilio will receive ten million shares of Kore common stock, which equates to roughly 11.5 percent of Kore’s issued and outstanding shares.
IoT is not Twilio’s core offering, but its execs have regularly cited it for its untapped potential as a forward-looking investment. This deal surrenders control of its IoT unit but still allows Twilio to stay invested within the space.
Twilio's Head of IoT, Taylor Wolfe, explains: "We are just scratching the surface of the opportunities IoT can unlock for customers.
As a global leader in IoT, Kore has the right expertise, vision, and technology to expand the robust offerings that Twilio's world-class IoT team has built.
"Kore is the right home for Twilio's IoT business, and we look forward to this acquisition increasing scalability and creating even more powerful business outcomes for our customers going forward."
The deal will provide Kore with an experienced IoT team, a strong customer portfolio, and Twilio Super SIM, which has garnered a lot of attention.
Kore, which describes itself as the "world’s leading pure-play IoT provider", believes the acquisition plays into its growth strategy and provides its customers with a unified and seamless IoT solution.
The acquisition will enable Kore to launch a connectivity suite, made up of Kore OmniSIM and Twilio Super SIM.
Kore will also be able to run a continuous operation of building, deploying, managing, and scaling operations using combined technologies and facilities.
Twilio’s IoT team’s digital experience, Kore’s 20 years of IoT experience, and 24/7 customer support will help to accelerate the time to market, according to Kore.
Completion of the acquisition remains subject to closing conditions, which include meeting certain ancillary agreements.
