The Board of Intec Telecom Systems PLC (ITL.L) is pleased to announce that it has signed an agreement with Ericsson AB of Sweden to acquire Ericsson’s ‘Settler’ interconnect billing product unit, including the Settler development team and worldwide rights to develop and market the Settler product range. The agreement includes further cooperation between the two companies where Ericsson will continue to offer solutions based on Settler as well as Intec’s InterconnecT product suite.
The total consideration, to be settled in cash, amounts to US$5.1 million (£3.3 million). The acquisition will be revenue and earnings enhancing, generating new license revenues, related services work and recurring revenues for support & maintenance.
Interconnect systems are used by telecoms carriers and service providers to calculate and bill the charges levied for carrying each other’s telecoms traffic. These charges generally represent the largest single transactions that a telecom operator undertakes on a regular basis.
A key benefit of the agreement are the synergies that will be achieved. Ericsson has a direct presence in some countries where Intec has none, enabling a greater reach. In other areas, where the two companies have previously competed fiercely, efforts can be re-directed to other productive opportunities.
“Ericsson has developed a strong, worldwide customer base for Settler,” said Intec’s Executive Chairman, Mike Frayne. “By acquiring this product unit we not only bring in a useful additional revenue stream and wider sales channels, but also some interesting technical capabilities in areas such as Least Cost Routing.”
The agreement also enables Ericsson as well as other successful Settler partners to be able to offer their telecom customers Intec billing technology from either the InterconnecT or the Settler range.
“With a portfolio of own and third party products, Ericsson will continue to act as a major systems integrator in the area of charging and business support solutions,” said Mikael Bäckström, head of Systems Integration at Ericsson Global Services. “Divesting the Ericsson product for interconnect settlements to Intec will ensure continued access to excellent products from a leading software vendor and strengthen Ericsson’s offering in this area.”
For more information:
Kevin Adams, Chief Executive Officer,
Mike Frayne, Executive Chairman,
+44 (0) 1483 745800,
Andrew Rodaway, +44 7768 808082
Intec Telecom Systems PLC
Intec Telecom Systems is an award-winning worldwide Operations Support Systems (“OSS”) vendor for fixed, mobile and IP/next-generation networks, with more than 250 customers for its products worldwide. Founded in 1997, Intec was listed on the London Stock Exchange (Code: ITL.L) in June 2000. Intec is the market leader in intercarrier billing systems and one of the largest suppliers of convergent mediation software. The company is currently listed in Deloitte Touche Tohmatsu’s top 500 fastest growing companies in Europe, and received the prestigious Queen’s Award for Enterprise in April 2002 for its success in growing international sales by almost 400% in 3 years. Intec’s portfolio includes:
· Inter-mediatE™ - convergent mediation solution
· InterconnecT™ - intercarrier billing including US CABS and ITU
· Inter-activatE™ - flow-through provisioning and activation
Intec’s customer base includes, among others, AT&T, BellSouth, BellSouth Peru, Brazil Telecom, Cable & Wireless, Cesky Telecom (Czech Republic), COLT Telecommunications, EBT (Taiwan), France Telecom, Hutchison 3G, ITXC, Maroc Telecom, Maxis (Malaysia), Singtel Optus (Australia), Orange, Telecom Argentina, Telecom Egypt, Telecom Italia, TPSA (Poland), Swisscom, T-Mobile International, Telia (Sweden), Telkom South Africa, Telstra, US Cellular, Westel (Hungary), Vodafone and Verizon. For more information on Intec Telecom Systems, visit the website at http://www.intec-telecom-systems.com.
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