CSG Systems (Nasdaq: CSGS) is bulking up its billing capabilities by crafting an agreement to acquire UK-based Business Support Systems (BSS) software vendor Intec Telecom for $372 million.
Already approved by the boards of both companies, Intec Telecom shareholders will be entitled to receive 72 pence in cash for each Intec Share, valuing the transaction at approximately $372 million.
Of course, the key attribute of the deal is scale. Expecting to close the deal in Q4 2010, CSG said that by adding Intec--a company that claims to have 60 percent of the top 100 global service providers in wireline, wireless and cable as their customers--will create a company with a larger set of offerings, but also greater market reach and overall economic scale.
Indeed, both companies already have a sizeable service provider customer base including top tier traditional wireline operators (Bell Canada and Telecom New Zealand) competitive global providers (COLT, Global Crossing and XO) and cable (Charter, Comcast and Cox)
"The communications industry is dramatically changing," said CSG CEO and President Peter Kalan in a release. "Consumers have more choices for content, devices and providers. This has created an opportunity for service providers to differentiate their offerings by being more flexible and responsive to the end consumers."
For more:
- CED has this article
- see the acquisition release here
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