Mavenir sheds $1.3B in debt, refocuses on AI and mobile core in major recapitalization deal
Mavenir, a provider of cloud-native network infrastructure, announced a significant debt recapitalization on Monday that will eliminate over $1.3 billion of its existing debt and inject $300 million in new senior financing. The deal, led by its majority investor Siris, aims to stabilize the company’s finances and pivot its strategic focus toward its profitable Mobile Core business and artificial intelligence.
The transaction will substantially reduce Mavenir’s net leverage and increase its liquidity, positioning the company to move forward with a more stable capital structure. Private equity firm Siris will remain the controlling shareholder, with key existing lenders also participating in the deal, which includes a smaller subordinated facility provided by Siris and others.
With the new financial footing, Mavenir plans to double down on its Mobile Core segment, a suite of software applications for voice, messaging, and data services. The company will also refine its investment in Open RAN, shifting its focus to 4G and 5G software while retaining its hardware IP to support current customers.
“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,” said Pardeep Kohli, President and CEO of Mavenir, in a statement.
As part of its refined strategy, Mavenir will accelerate investment in AI capabilities across its business units. The company stated this will help drive network automation and unlock new revenue streams.
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“This is a pivotal moment for our company,” said Hubert de Pesquidoux, Mavenir Executive Chair and Siris Executive Partner. “By strengthening our capital structure, we will be better positioned to execute our strategy, invest in innovation, and deliver on our commitments.”
Siris, which specializes in technology company investments, reaffirmed its backing of the network provider.
“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,” said Frank Baker, Co-Founder and Managing Partner of Siris.
The company expects the transaction to close in approximately four to six weeks.