LONDON, August 30, 2016 /PRNewswire/ --
LetterOne (L1), the international investment business, headquartered in Luxembourg, today announces a strategic partnership with FreedomPop, the disruptive US based mobile 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 $50 million investment in FreedomPop, announced earlier in the year, 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 OTT customer's propositions. It recently announced a $200 million investment in Uber.
FreedomPop, one of the fastest growing and most innovative mobile service providers in the world, extended its disruptive "Freemium" business model from the US to the UK and Spain earlier this year. Having successfully proven the capability to deliver free mobile service beyond the US, FreedomPop plans to open an additional 8 markets by the end of next year with the continuation of this fast rollout across Asia, Europe and Latin America thereafter.
L1 is partnering with FreedomPop to extend its deep 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 better compete 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."
Notes to editors
FreedomPop is a wireless internet and mobile phone service provider based in Los Angeles, California. The company provides wireless data, voice, and text services on Clearwire and Sprint's network. FreedomPop was founded in 2012 by CEO Stephen Stokols and COO Steven Sesar. Mustafa Kiral, Senior Partner at L1 Technology, will join FreedomPop's Board of Directors and help to expand FreedomPop into new markets.
L1 Technology's main office in in London. LetterOne was founded in 2013 and is headquartered in Luxembourg. It is an international investment business targeting investments in sectors where it has world class expertise, and where it can generate long-term sustainable growth.
SOURCE LetterOne (L1)