Kore Telematics has taken over Jazz Wireless Data to expand its footprint and expertise in the M2M connectivity area.
Under the deal, whose terms were not disclosed, Kore (Alpharetta, GA, USA) will acquire a “six-figure” subscriber base from Jazz (Raleigh, NC, USA), which provides M2M networking services in North America.
It also looks set to benefit from an interconnect agreement in place between Jazz and T-Mobile (Bellevue, WA, USA), the fourth-largest mobile network operator in the US.
The T-Mobile relationship means that Kore will be able to provide customers with multiple 2G GSM, 3G and 4G connectivity options.
“The addition of a direct relationship with T-Mobile enables KORE and its customers to leverage an ongoing commitment to 2G services in a time of transition in the North American market,” said Alex Brisbourne, the president and chief operating officer of Kore.
“We look forward to developing these new carrier, customer and employee relationships to broaden the reach of the KORE network and technology platform offerings.”
Indeed, the deal should allow Kore to cater to M2M customers who are concerned about the looming shutdown of 2G networks by AT&T (Dallas, TX, USA) and Verizon Wireless (New York City, NY, USA), the country’s two biggest operators.
Although 4G technology is becoming increasingly relevant to the M2M industry as device and connectivity prices fall, there is likely to be continuing demand for 2G services from customers who require only limited bandwidth.
Kore says it will retain the Jazz headquarters facility in Raleigh and that it expects to complete all aspects of the Jazz integration within five months.
“Jazz and KORE share a philosophy of working closely with our customers to provide the M2M connectivity and network management options that are right for their specific business needs,” said Gregor Bleiman, the president of Jazz. “This approach is only strengthened by the acquisition, as our customers will immediately benefit from KORE services to support and boost their business.”
T-Mobile has also welcomed the deal, saying its Un-carrier approach – which positions the operator as a disruptive telecoms player – will work to the benefit of Kore and Jazz customers.