TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research and Innovation
  • Security
  • More Topics
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • |
  • About
  • Contact
  • |
  • Connect with us
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research & Innovation
  • Security
  • Connect with TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

Open RAN

Open RAN

New investor takes $500M stake in Mavenir

Ray Le Maistre
By Ray Le Maistre

Apr 21, 2021

  • Open RAN champion Mavenir has attracted a new investor
  • Koch Strategic Platforms takes a minority stake for $500 million
  • Mavenir remains vague on its IPO intentions 

Open RAN technology champion Mavenir has announced a new major investor in the form of Koch Strategic Platforms, which has taken a minority stake in the vendor for $500 million. Mavenir’s current owner, Siris Capital Group, retains a majority stake in the company. 

Koch Strategic Platforms invests in companies in four sectors – computing and connectivity, industrial automation, energy transformation, and health care – and positions itself as an active investor that can help its portfolio companies benefit from each other.

To that effect, Mavenir is presenting the investment as an opportunity to gain greater traction with, and insight into, some key verticals.  

“Together with KSP and our service provider customers, we expect to bring innovation and 5G to revolutionize industries such as energy, industrial automation, and health care,” stated Pardeep Kohli, Mavenir’s President and CEO. 

Hubert de Pesquidoux, Siris Executive Partner and Executive Chairman of Mavenir, added: “The combination of Mavenir’s 5G software platform and Koch Industries’ presence in relevant industry verticals will accelerate the Company’s participation in the massive digital transformation opportunity.”

Mavenir is not revealing how big a stake Koch is getting for its $500 million, only that it is a minority holding, so there’s no indication what kind of valuation this investment affords to the vendor. The company has confirmed, though, that new equity has not been released, so Siris (presumably) has sold a chunk of its holding to Koch. 

The investment comes six months after Mavenir abandoned its short-lived IPO plans: In its SEC filings for that process, the comp any revealed its annualized revenue run rate was in the region of $470 million and growing and that it was turning a single digit operating profit (about 4%), based on numbers reported for the six months to end of July 2020. Given the gradual swing towards virtualized and even Open RAN systems and the increasing pressure on network operators to engage with vendors beyond the dominant few large traditional suppliers, it’s hard to imagine that Mavenir, which is constantly in the news for developments related to Open RAN, isn’t going to continue to grow during the next few years, particularly as the RAN market is expected to grow in value as 5G investments ramp up. (See Mavenir, Xilinx claim mMIMO Open RAN breakthrough and more in this dedicated Mavenir channel.)

So what might Mavenir be worth? 

Using the ‘stick a wet finger in the air’ valuation method favoured by the team here at TelecomTV, I would guess that Mavenir’s investors would likely value the company somewhere in the region of $2.0 billion to $2.5 billion, but it is worth noting that is nothing more than a guess.   

And might it once again perform an IPO U-turn and aim to list its shares on the public markets? The company says only that it is “well funded to undertake our strategic plan and should the decision to go public need to be revisited, we would discuss with our board.”

- Ray Le Maistre, Editorial Director, TelecomTV

Related Topics
  • 5G Evolution,
  • Analysis & Opinion,
  • Digital Platforms and Services,
  • Mavenir,
  • News,
  • North America,
  • Open RAN,
  • Open Telco Infra,
  • Radio Access Network,
  • Telecoms Vendors & OEMs

More Like This

Open RAN

Deutsche Telekom “not giving up” on Open RAN

Feb 3, 2023

The Great Telco Debate

The Great Telco Debate 2022 highlights

Feb 3, 2023

Open RAN

Mavenir proves AMD technology across its Open RAN OpenBeam Radio and Converged Packet Core portfolio

Feb 3, 2023

Open RAN

Why trust will be key to Open RAN's future

Feb 1, 2023

HPE & Intel

4th Gen Intel® Xeon® Processor for vRAN - Video

Jan 31, 2023

Email Newsletters

Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

0:46

The Cloud Native Telco Summit returns this September!

8:32

Azita Arvani on Being a Female Leader at Rakuten Symphony

16:19

AT&T Amy Zwarico on securing telco applications in the public cloud

1:44

Join us for the greatest industry debate of the year!

TelecomTV
Company
  • About Us
  • Media Kit
  • Contact Us
Our Brands
  • DSP Leaders World Forum
  • Great Telco Debate
  • TelecomTV Events
Get In Touch
[email protected]
+44 (0) 207 448 1070
Connect With Us
  • Privacy
  • Cookies
  • Terms of Use
  • Legal Notices
  • Help

TelecomTV is produced by the team at Decisive Media.

© Decisive Media Limited 2023. All rights reserved. All brands and products are the trademarks of their respective holder(s).