The price is right, KORE (NYSE: KORE) agrees to $726 million buyout

KORE Group Holdings Inc. (NYSE: KORE) announced it has entered into a definitive merger agreement with Searchlight Capital Partners and Abry Partners for an all-cash acquisition valued at approximately $726 million.

Under the agreement, shareholders will receive $9.25 per share in cash. The purchase price represents a 691% premium to KORE’s closing price on December 18, 2024, which was the last trading day before Searchlight indicated it might pursue a full acquisition of the Internet of Things company.

Abry currently owns approximately 28% of KORE’s outstanding common stock. Searchlight holds all of the company’s Series A-1 preferred stock with a liquidation preference of approximately $275 million and warrants to purchase about 14% of common shares on a fully diluted basis.

The KORE board voted unanimously in favor of the transaction based on a recommendation from a special committee of independent directors. The committee conducted a comprehensive review of strategic alternatives.

“We are pleased to have reached this agreement with Abry and Searchlight, which unlocks significant value for our stockholders at a substantial premium,” said Ron Totton, KORE’s chief executive officer and president.

The transaction requires approval from holders of a majority of outstanding voting shares and separate approval from stockholders other than Searchlight, Abry and affiliated parties. Additional conditions include regulatory clearances from the Hart-Scott-Rodino Act and the Committee on Foreign Investment in the United States.