FTI Capital Advisors Guides Pareteum Corporation on its Sale to Circles Global and Channel Ventures Group
Washington, D.C., Aug. 17, 2022 — FTI Capital Advisors LLC (“FTICA”), the wholly owned investment banking subsidiary of FTI Consulting, Inc. (NYSE: FCN), recently advised Pareteum Corporation, a global cloud communications platform company, on its sale to Circles MVNE Pte. Ltd and to Channel Ventures Group, LLC.
Pareteum’s Mobile Virtual Network Enabler (“MVNE”) business and associated contracts were sold to Circles MVNE Pte. Ltd., and Pareteum’s Mobile Virtual Network Operator (“MVNO”), IDM, iPass, and Small and Medium Business Enterprise (“SMB”) businesses and associated contracts were sold to Channel Ventures Group, LLC. This engagement highlights FTICA’s expertise in creatively guiding clients through multifaceted transactions, in this case by providing a comprehensive advisory team of FTI Consulting’s investment banking professionals, telecommunications, media and technology (“TMT”) industry practice specialists, restructuring experts and strategic communications specialists to achieve optimal results.
FTICA was retained as Pareteum’s investment banker and financial advisor to support its capital raise and going concern sale process. The restructuring team supported the company in its preparation for and throughout the Chapter 11 process, which included liquidity forecasts, improving cash flow management, analyzing business plans and providing negotiation assistance, and the strategic communications team supported both the company’s public and stakeholder communications efforts.
Pareteum faced several challenges related to an increased cost of capital and the COVID-19 pandemic, as well as legacy corporate issues and shareholder litigation. FTICA utilized its extensive network of industry and financial relationships to contact over 200 strategic and financial parties who were expected to have an interest in acquiring a combination of the company’s assets. The recently completed transaction brings together Pareteum Corporation and the communication-platform-as-a-service (“CPaaS”) businesses of Circles MVNE Pte Ltd and Channel Ventures Group, strengthening the position of each company in the global telecommunication software-as-a-service (“SaaS”) industry.
Headquartered in Singapore with operations across the globe, Circles MVNE Pte. Ltd. is the world’s leading SaaS operating system for telecommunications providers. Channel Ventures Group, LLC regroups the worldwide MVNO and IoT business known as Pareteum and the Wifi (iPass) business in SYNTEGRA, which is headquartered in the Netherlands and has U.S. offices in Dallas and Miami. SYNTEGRA offers an integrated communications platform for MVNO, Wifi and IoT services.
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Source: FTI Consulting, Inc.