NEW YORK—Lucent Technologies Inc., which purchased Kenan Systems Corp. for $1.48 billion in stock in early 1999, has agreed to sell the billing and customer care unit for $300 million in cash to Denver-based CSG Systems International Inc.
In a related transaction, CSG Systems will supply billing and customer care software for Lucent’s networking solutions.
“Our billing and customer care group is a leading business, but it is not part of the core networking infrastructure and professional services that Lucent is investing in going forward,” said Bill O’Shea, executive vice president of corporate strategy for Lucent, based in Murray Hill, N.J.
CSG Systems, a leading provider of customer care and billing to the broadband industry, counts AT&T Broadband, AOL Time Warner, EchoStar Communications and Prodigy among its customers. Kenan’s customers include 25 of the largest Internet service providers, wireless and wireline carriers and cable and satellite television carriers.
“The entire Kenan Systems team is very excited about being a key part of CSG Systems … Although many details of the sale are still being refined, be assured that our customers’ success is our top priority,” said Robert Kiburz, vice president and general manager of the Lucent Billing and Customer Care Group, Cambridge, Mass.
The companies announced the deal in late December and said they expected it to close by the end of the first quarter of this year.
“CSG’s strong business model allowed us to be patient as we sought out an acquisition that met our strategic business and financial objectives,” said Neal Hansen, chief executive officer of CSG Systems.
“The CSG business model generates a significant amount of cash and affords us a strong balance sheet. This allows us to combine the leading providers of customer care and billing solutions to the broadband, wireless and wireline telephony industries to create a customer care and billing powerhouse without issuing new stock.”
