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Two Companies Merge Assets to Augment Global Footprint, and Extend Product Portfolio to Enable Future Digital Solutions
Comverse, Inc. (Nasdaq:CNSI), a digital services firm, today announced it has completed the previously-announced acquisition of Acision, a privately-held leader in secure mobile messaging and engagement services.
Comverse acquired all of the equity interests in Acision for a purchase price consisting of $136 million in cash, 3.14 million shares of Comverse’s common stock, and potential earnout payments of up to $35 million. In addition, Acision’s existing $156 million senior credit facility will remain in place.
Beginning immediately, Comverse and Acision are merging their complementary technologies and solutions portfolios to create an evolutionary platform for rapid service creation opportunities. This combined platform is designed to enhance Communication Service Providers’ (CSPs) ability to address current market forces around simplification and modernization of networks and services, as well as deal with emerging new technologies such as RCS and WebRTC. More importantly, the newly formed entity can entrench itself more formidably in the highly profitable monetization services market and surging market of Enterprise mobility.
The converged solutions are ready to ship today and include:
Cloud Multi-VAS (SMS, MMS, Visual Voicemail, Messaging Gateways)
IP Messaging and RCS (Rich Communication Suite) services
Multi-device Mobile Monetization Services
Security Solutions, such as Spam & Fraud Prevention and Control
Multi-Content Store and Data Analytics
Secure Enterprise Application-to-person (A2P) Messaging
Two-factor Authentication (2FA)
Richer, Real-time Communication Solutions, such as WebRTC
“As Communication Service Providers transition to Digital Services Providers, they require access to sophisticated solutions that help them gain competitive advantage and monetize the ‘fourth wave’ of digital services,” said Philippe Tartavull, President and Chief Executive Officer, Comverse. “Comverse’s acquisition of Acision immediately gives our combined company technology leadership, addressing CSPs’ current and future needs with our complementary product lines, building on our already strong presence in the digital communications market.
“Together, we are in a powerful position from day one to continue to increase penetration across our 350+ global customer base, which includes many of the biggest CSPs and Mobile Network Operators around the world. Moreover, the newly formed company will start with an enviable list of global Enterprise customers who will be able to validate our technological approach of mobilization and establishing secure communication to their customers and workforce. Through our combined insight, ideas, products and solutions, we are better equipped to create paths that help navigate mobile operators and enterprises through the digital ecosystem and realize richer communication futures.”
Comverse plans to rebrand the company to reflect its new market positioning later this year. The company’s global headquarters will remain in Wakefield, Massachusetts, USA.
