Comptel to sell Axioss software to Cisco for EUR 21.3 million
Comptel has signed an agreement to sell its Axioss software to Cisco. Axioss is a fulfillment solution developed by Axiom Systems, a company that Comptel acquired 2008. The transaction is estimated to close in September 2011. Comptel and Cisco will continue their cooperation across other areas of OSS/BSS, e.g. cloud mediation and charging.
The consideration to be paid by Cisco for the acquired assets is EUR 21.3 million in cash. Comptel will book this as other operating income for the third quarter of 2011. The estimated net operating profit impact of the transaction is EUR +8.5 million, recognized also in the third quarter of 2011. All numbers have been converted to euros using exchange rates as of 19 August 2011.
Comptel will continue in fulfilment business developing and selling its Comptel Fulfillment Solution. According to Comptel strategy, the next release of Comptel Fulfillment Solution, based on a new technology platform will be released in the first half of 2012. Comptel will also retain its existing Axioss customer relationships and will continue to support these customers.
As part of the deal, Cisco is also taking on some personnel related to the Axioss assets, mainly based in the UK. Mr Gareth Senior, Comptel CTO and member of the Executive Board, will also be transferring to Cisco. After planned replacement investments the transaction will not impact Comptel’s cost base significantly in 2012. The transaction is estimated to have a negative net sales impact of approximately EUR 2 million in 2011.
Mr Juhani Hintikka, President and CEO of Comptel, comments: “This is a great deal for Comptel. It underlines our technology leadership in the OSS/BSS domain. This does not change our fulfilment strategy, which is to achieve growth and the market-leader position for convergent telecom service providers.”
Full Year Outlook for 2011
Comptel revises its full-year guidance. In 2011, net sales are estimated to remain at the previous year’s level or to decrease slightly. Following the transaction, the operating profit for 2011 will clearly increase, but operating profit excluding the deal related one-off items will decrease from the previous year.
Earlier the company had estimated the net sales would grow moderately in 2011 and the operating profit to remain at the previous year’s level.
Comptel software enables telecom operators to deliver services flexibly and charge them effectively. Comptel’s wide expertise in service fulfillment, mediation and charging empowers customers to focus on delivering innovative services. Comptel has provided solutions to 280 service providers with more than one billion subscribers in 85 countries. The Group has about 600 employees worldwide, and net sales were EUR 78 million in 2010. www.comptel.com
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