Subex Azure Limited, a provider of revenue maximization solutions for telecom operators, announced yesterday that it has entered into a conditional agreement to acquire Richmond Hill, Ontario based Syndesis Limited, a global provider of telecom OSS (Operations Support Software) solutions.
The all cash deal values Syndesis at US $164.5 million based on trailing twelve months (TTM) revenue of US $ 45 million.
“Subex Azure's success of the last few years, as we grew to be one of the leaders in the Revenue Maximization solution segment, is driven by our strategy to offer a portfolio of software solutions that helps telecom operators gain competitive advantage,” commented Subash Menon, Chairman, Managing Director & CEO of Subex Azure. “Subex Azure has identified a compelling opportunity to replicate its current success by extending its offering to the Fulfillment and Assurance solution segment through the acquisition of Syndesis, a leading vendor in this segment. We expect this major acquisition to add significant value for our shareholders.”
“Syndesis has had exceptional growth over the past several years and we see tremendous potential for further growth in a host of important strategic areas of the OSS space. If completed, this acquisition will provide significant sources of new capital and resources to take advantage of these growth opportunities. We are bringing together two powerful leaders in the fast growing market for telecom software solutions in a naturally synergistic manner. The two sets of product portfolios, customers and domain expertise brought together by Subex Azure and Syndesis are complementary, and will address fundamental needs of telecom operators as they seek to differentiate service offerings, while containing costs and maximizing margins,” said John Lochow, CEO of Syndesis.
The acquisition is expected to closed on or before March 31, 2007. Upon completion of the acquisition, the current Syndesis business will form the second of three proposed Strategic Business Units (SBUs) of a reorganized Subex Azure Limited.
Bangalore, India based Subex Azure Limited is a leading vendor of revenue maximization solutions for telecom operators. Subex Azure pioneered the strategic concept of Revenue Operations Center (ROC) for telecom operators, which is a centralized and integrated platform from which operators can assess, address and correct all aspects of their revenue maximization processes. Subex Azure's Rocware™ is an integrated suite of software solutions that “powers the ROC.”
Founded in 1986, venture-backed Syndesis has raised in excess of US $50 million from Helix Investments, Greylock Partners, Pequot Capital, Sequoia Capital, VenGrowth Investment Fund, VenGrowth II Investment Fund, and Covington Venture Fund (formerly Triax Growth Fund Inc.)
Syndesis last institutional round of financing closed in January 2001.
VenGrowth, VenGrowth II, and Covington Venture Fund list their investments in Syndesis at $15 million (as at October 13, 2006), $1.05 million (August 31, 2006), and $1.16 million (November 30, 2006) respectively.