Cloud software and communications platform Pareteum closed a $50 million committed senior secured credit facility with Post Road Group to enable rapid growth of operations via targeted mergers and acquisitions.
Pareteum Executive Chairman and Principal Executive Officer Hal Turner commented, “During 2018, we showed our ability to convert our contractual revenue backlog into tangible results. This financing gives us a new currency with which to support our aggressive market consolidation through accretive acquisitions and organic growth strategy and improves leverage in the business to respect the value that management places on equity. The facility will allow us to continue on our current growth trajectory in 2019 and the future.”
Michael Bogdan, managing partner of Post Road Group, added, “We are excited to become Pareteum’s capital partners during its next phase of growth and development. The strength of Pareteum’s combined capabilities after its recent acquisitions creates a company with significant scale and international presence to drive further consolidation in this industry.”
The credit facility was led by Post Road Group and provides financing secured through Pareteum’s existing recurring revenue streams from its software-as-a-service platform, as well as its growing intellectual property portfolio. The transaction enables Pareteum to continue to demonstrate its ability to grow revenues on an organic as well as inorganic basis, globally.
Approximately $11 million of the initial draw will be used to repay the debt Fortress Credit assumed in the iPass transaction.
