When iPass announced that it had received 20 million dollars credit from the Fortress Investment Group it was another sign of how much the company was determined to venture into the various emerging sectors.
iPass is today considered the largest WIFI hotspot provider in the world. The company has more than six million WIFI Hotspots stations spread across the globe. This can be found in airports, hotels, train stations, convention centers and other places that people converge. Their continuous innovation has over the years, aided this in the provision of hotspot technology as well as other areas. They offer services in SaaS, which is offered to clients both residential and corporate in limited or unlimited nature. The company expects that it may grow its hotspots around the globe to as many as 340 million by the end of the year. This kind of expansion will require intense capital and at the same time require the company to keep delivering the same quality its clients are used to.
This is what brought iPass and the Fortress Investment Group together. One was looking for an investment opportunity, and the other was looking for an understanding investor. The agreement as structured meant that iPass would get 10 million dollars right away and the balance would be released later as agreed upon.
The investment as iPass CEO Gary Griffiths stated would enable his company to strengthen its balance sheet which would give them an opportunity to focus on expansion and growing their revenue. In doing so, the company would be able to close the gap in profitability.
The Fortress Investment Group would secure the Credit advancement by the various patents owned by iPass. This would include their futuristic Veri-Fi and SmartConnect Technology.
The Fortress Investment Group have now joined a group of others who have been keen on having tech related investments in portfolio. The company is fully aware of how disruptive technology is becoming the new norm and bringing big bucks with it. Despite Fortress being acquired by Softbank, they are still keen on such investments. They are in fact in a better position to make the said investments given the increased inflow of investment cash as well as the expertise in technology held by SoftBank.
Riley Financial Inc was the broker of the deal, and their understanding of Principal Investments, Auction and Liquidation, Valuation and Appraisal and Capital Markets placed them in a prime position to advise on the same.