NEW YORK—Mobile software developer Comverse Technology Inc. said it will spend up to $180 million in cash to acquire privately held Netcentrex S.A.
Paris-based Netcentrex makes software for Voice over Internet Protocol services as well as IP-based video and data offerings and fixed-mobile solutions for service providers. The company generated about $50 million in revenues last year.
The deal is expected to close by July 1, the companies said, and is projected to be neutral to Comverse’s fiscal 2006 earnings. Comverse, which offers software for wireless communications systems and billing services, said the acquisition will help it address the coming convergence between technologies.
“We believe VoIP, FMS (fixed-mobile convergence) and IMS-based communication services are poised to grow in the coming years, and that Netcentrex is well-positioned to address many of these opportunities,” said Kobi Alexander, Comverse’s chief executive officer. “Together, the two companies offer a broad portfolio that enables converged voice-video-data solutions, serving wireless, fixed, cable, MVNO and Internet-based communication service providers.”
Comverse will spend $164 million, subject to certain adjustments, and as much as $16 million more depending on Netcentrex’s future performance. Investors were unimpressed with the news, though, sending shares of Comverse down 2 percent to $23.92 by mid-day Tuesday on the Nasdaq.
