Example of a Strategic Partnership Creation

Here is a more in-depth step-by-step description that exemplifies my partnership, cross-licensing deal creation experience:

• Novatel’s Problem – Novatel products are sold through the wireless operators and Novatel has no view into the final customer. Additionally, the devices are becoming commoditized and Novatel was looking for a way to create more “stickiness” and also have a way to engage the customer directly.
• Novatel was sitting on over $100M in cash and was looking for an acquisition to solve the above problem.
• I was tasked with finding potential acquisition targets or partners to solve these problems.
• I was introduced to a start-up company (not mentioning it here by name due to possible disclosure issues) that built an IT Policy Enforcement platform for laptops that enabled IT managers to create user profiles allowing them specific access to networks through Wifi, 3G, and LAN based on their location and job function. The platform supports various wireless devices, including Novatel’s
• The start-up was at that time selling their software through carriers’ Business Sales areas and was looking for a partner that had access to carriers.
• I worked closely with the start-up company in creating a business proposition that would bundle the Trellia system with Novatel’s devices to offer it as a complete package. There was a revenue share piece where Novatel was to get a certain percentage of each license deal plus percentage of maintenance fees. This solution was to give Novatel also a way to track their devices within the final customer through this company’s platform, providing visibility into the actual usage and for future marketing purpose.
• I then completed full company due diligence on their product, staff, financials, and investments and created a comprehensive report for Novatel’s senior management to evaluate potential acquisition. I felt it was a perfect opportunity given their revenues, future forecasts and current acquisition value.
• The deal unfortunately never happened, the start-up company decided to pull out of it due to their board’s decision to change direction and go direct to customers. But the structure of the deal I put together was still very good for Novatel and it probably would have gone forward if not for this change.