Mavenir, a cloud-native network infrastructure provider building the future of networks, and its existing investor Siris, a private equity firm focused on investing and driving value creation in technology companies, have signed a comprehensive recapitalization with Mavenir’s lenders.
This transaction will strengthen Mavenir’s balance sheet by eliminating over $1.3 billion of existing indebtedness and securing $300 million of new senior financing, in addition to a smaller subordinated facility provided by Siris and participating lenders. With increased liquidity, a more stable capital structure and substantially reduced net leverage, Mavenir will be well-positioned for sustained growth and long-term success. Siris will maintain its controlling ownership position in Mavenir and remain an active partner as Mavenir advances its vision of a cloud-native, AI-enabled network.
“We have been spearheading cloud transformation in Core and Open RAN,” Pardeep Kohli, president and CEO of Mavenir, said. “With a strengthened balance sheet and lower leverage, we are doubling down on our software expertise and domain knowledge to deliver a comprehensive, end-to-end, AI-native telco stack, setting Mavenir up for profitable growth in both Core and Open RAN. We are excited to leverage our Mobile Core leadership to accelerate software-driven network transformations for our customers around the world.”
“This is a pivotal moment for our company,” Hubert de Pesquidoux, executive chair of Mavenir and executive partner of Siris, said. “By strengthening our capital structure, we will be better positioned to execute our strategy, invest in innovation and deliver on our commitments. We are deeply grateful to all our stakeholders – our customers, partners, investors and especially our employees – for their unwavering support and confidence throughout this process.”
“Mavenir has been a powerful innovator throughout its existence, and we are proud to continue our long-standing partnership with them as they continue building upon their leading position in the software industry,” Frank Baker, co-founder and managing partner of Siris, said. “We look forward to supporting Mavenir during this next chapter of innovation and growth.”
The transaction is expected to close in approximately four to six weeks.
As part of these broader efforts to position itself for growth, Mavenir will double down on its profitable Core segment, a suite of software applications focused on voice, messaging, video and data services, while refining its Open RAN investments to prioritize software in 4G and 5G deployments. Mavenir will also maintain its Open RAN hardware IP and continue to support its existing customers to ensure maximum flexibility in the evolving Open RAN landscape. This strategic decision will ensure Mavenir is best positioned to deliver even more innovative products and programs to its global customer base while remaining at the forefront of the Open RAN ecosystem.
Mavenir will also accelerate investment in AI capabilities across its Mobile Core and Open RAN businesses to drive autonomous networks, deliver AI-native solutions and unlock new revenue streams through AI-based solutions.
