LetterOne and FreedomPop announce strategic partnership following clearance to complete US$50m investment
LetterOne (L1), an international investment business headquartered in Luxembourg, has announced a strategic partnership with FreedomPop, the disruptive US-based mobile service provider, based in California.
This announcement follows L1’s receipt of clearance from the Committee on Foreign Investment in the United States (“CFIUS”) to complete its US$50 million investment in FreedomPop, announced earlier in the year. The investment is designed to assist and accelerate FreedomPop’s international expansion.
L1 Technology, which aims to invest overall US$2–3 billion in mid-to-late-stage technology growth opportunities, is investing in, and looking for strategic partnerships with, leading digital pioneer companies around the world. It is looking for the next generation of over-the-top (OTT) customer’s propositions, and recently announced a $200 million investment in Uber.
Mobile service provider FreedomPop, described by its partner as fast growing and innovative, extended its disruptive “Freemium” business model from the US to the UK and Spain earlier this year. Having proven the capability to deliver free mobile service beyond the US, FreedomPop plans to open in an additional eight markets by the end of next year with the continuation of this fast roll-out across Asia, Europe and Latin America to follow.
L1 is partnering with FreedomPop to extend its operating relationships and knowledge of emerging markets and telecoms which will be crucial in helping FreedomPop achieve its global targets. In addition, L1 is assisting FreedomPop to compete better in an increasingly digital and OTT centric world.
“This partnership illustrates the value and impact that L1 Technology can have, particularly versus traditional private equity and later stage venture capital investors,” said Stephen Stokols, FreedomPop’s CEO.
“L1 is not only capable of bringing significant capital, but also delivering valuable and accretive strategic partnerships for digital pioneer companies around the world”, he said.
“L1’s expertise will be used to accelerate our international expansion,” added Stokols. “L1’s unique ability to open new markets and new growth opportunities will deliver real value for us beyond what any typical late stage investor could do,” he added.
Commenting on the investment Alexey Reznikovich, L1 Technology’s managing partner, said: “FreedomPop are true digital pioneers. It is disrupting the businesses of traditional mobile carriers by giving people ways to use mobile devices free of any call charges. As the telecoms market consolidates, and technologies advance, it’s important to remain ahead of the curve in terms of new customer propositions.”
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