Wireless industry veteran Pardeep Kohli has been there before.
In 2013, he took Mavenir Systems, a Richardson-based mobile network software company, to the public trading markets in an IPO after several successful venture capital fundraising rounds. Two years later, the company was bought up by a Canadian firm for $560 million and Kohli went on to his next venture.
in 2016, when Ottawa-based Mitel Networks Corp. unloaded the company to a New York private equity investor for $200 million less than the original purchase price, it was merged with Kohli’s startup and another firm and he came back to lead the combined operation.
Now called Mavenir, the rebranded tech firm is once again ready for the public markets after a year that saw it bring in $427 million in revenue. Mavenir filed documents this week with the U.S. Securities and Exchange Commission for a Nasdaq-listed IPO.
The company provides “carrier-grade” software and tech for wireless service providers, including those building out 5G networks. Its tech suite specifically allows wireless providers to leverage existing 3G and 4G networks to make cost-effective transitions to 5G.
Mavenir’s fiscal 2019 revenue grew nearly 9% from the previous year and is up 17% through the first half of this year, according to its regulatory filing. Despite its revenue growth, it recorded an $81 million loss last year.
Company executives declined to be interviewed about the proposed IPO. According to Mavenir’s filing, the number of shares to be offered and pricing has not yet been determined. It plans to trade under the ticker symbol MVNR.
Mavenir’s client base is made up of over 250 wireless service providers, including wireless carrier T-Mobile USA and e-commerce company Rakuten.
Increased use of wireless services during the COVID-19 pandemic and the advent of 5G network development has been a driver for Mavenir, which described itself in the filing as being “at the forefront of disruption in the mobile network infrastructure industry.”
Some of the company’s growth plans are predicated on receiving business as a result of T-Mobile’s $26.5 billion merger with Sprint, which was finalized earlier this year. It conceded in its filing that slow adoption of new 5G wireless technologies by wireless providers could also hinder its growth.
Mavenir said it dedicates about 52% of its employees to research and development, part of its focus on innovation in the competitive network infrastructure space. It holds 579 patents.
The company operates out of a 60,000 square foot hub in Richardson and employs about 4,000 workers in Israel, Brazil, the U.K. and elsewhere around the world.
The global pandemic has had minimal impact on Mavenir’s business, aside from some delays in product deployments to certain regions and longer times for closing agreements with customers, the company said in its filing.
It also cited “significant litigation” as a potential risk for investors. That litigation includes claims to recover damages for previously-settled allegations regarding the illegal backdating of options in Israel, a securities class action alleging breaches of SEC rules and tax claims in Brazil, according to the disclosure.
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