Comverse to acquire Acision for $135 million
Comverse is to acquire UK mobile messaging provider Acision in a deal worth $135 million.
The acquisition of the IP messaging company brings a portfolio of mobile monetisation and rich enterprise messaging solutions which complements Comverse’s digital services platform, said the company.
"Continued consolidation in the service provider space creates the need for strong suppliers," said Philippe Tartavull, president and CEO of Comverse.
In addition to offering cloud multi-VAS and IP messaging services, the combined company will provide service providers, OTT and enterprise customers with enterprise application-to-person messaging, data analytics, credit orchestration, M2M communications, two-factor authentication, WebRTC, RCS and APIs.
Tartavull added: "Our acquisition of Acision underscores Comverse's commitment to quickly building scale and market leadership in the fast-growing digital services sector. This acquisition creates a formidable platform for innovation that is expected to serve our customers' current and evolving needs. The combined portfolio will allow us to enable our service provider and enterprise customers to deliver and monetise a new array of advanced digital services to their customers."
The purchase price will also include 3.13 million shares of Comverse common stock and potential earnout payments of up to $35 million. In addition Comverse will seek to maintain Acison’s existing $157 million senior credit facility following completion of the transaction, which is expected to be completed by the third quarter in 2015.
Folllowing completion of the deal, the company will be led by a team comprised of executives from both companies under the leadership of Tartavull.