Redknee strikes deal to acquire Nokia Siemens Networks' BSS unit
Nokia Siemens Networks on Wednesday reached a deal to sell its Business Support Systems (BSS) business to Redknee, signifying another move it has made to sharpen its focus on the mobile broadband market segment.
Following an agreement to sell its optical unit to Marlin Equity Partners, this is the second deal NSN made this week to offload more of its assets.
Redknee, a provider of software systems, will have a broad set of real-time charging, rating, policy, and customer care solutions that currently serve over 130 service providers, including half of the top 100 global mobile operators. The vendor will also gain a complementary global footprint that spans more than 90 countries, including Europe, Asia Pacific, the Middle East and Africa.
Lucas Skoczkowski, Redknee's CEO, said in a release that this acquisition will "add strong long-standing relationships with new Tier 1 operators and expand Redknee's market share and presence in high growth markets."
Redknee said it will finance the purchase through a combination of cash on hand and debt facilities. It will pay €15 million ($19.6 million) at closing in addition to €25 million ($32.7 million) for certain performance-based cash earn-outs expected to be paid over 12 to 36 months after the deal closes.
It seems that Redknee's move to bolster its OSS/BSS portfolio via an acquisition was imminent. According to a previous report in FierceBroadbandWireless, Redknee issued 13 million common shares to raise nearly $17.83 million in September, which can be used for potential acquisitions in OSS/BSS segment.
The vendors said that the acquisition is expected to close in the first half of next year after it clears customary regulatory, exchange and third party approvals, a consultation process with trade union representatives, and other customary terms and conditions.
Upon completion of the deal next year, about 1,200 current NSN BSS employees will be transferred to Redknee.
From a larger trend perspective, Redknee's deal is representative of an M&A wave in the OSS/BSS segment. Following its multibillion-dollar deal to acquire Telcordia, Ericsson (Nasdaq: ERIC) upped its BSS/OSS portfolio further by purchasing Toronto-based ConceptWave for an undisclosed amount.
Before striking a deal with Redknee, Ericsson itself was also rumored to have an interest in purchasing NSN's BSS unit.
- see the release
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