BICS agrees $230m acquisition of TeleSign
BICS has struck a deal to buy authentication and mobile identity services provider TeleSign for $230 million.
The Belgian wholesale provider said the acquisition of US-based TeleSign will help it create the world’s first end-to-end communication platform as a service provider by bridging the latter’s cloud communications platform with BICS.
CPaaS allows developers to add real-time communications features in applications and services by removing the need to build and develop backend infrastructure. IDC predicts the global voice and text messaging CPaaS market will grow from $867 million in 2016 to $8.2 billion by 2021, highlighting the opportunity for BICS.
The move is part of BICS drive to expand its role from a global carrier into an international digital enabler by diversifying its solutions, geographies and customer base. The acquisition will also help BICS enhance its geographical footprint in the Americas region.
“We’ve been in the driver’s seat of our industry’s transformation, and we’ve built a solid business of over 1.5 billion euro ($1.6 billion) in yearly turnover, with the ambition of bridging the telecom world with the new and innovative communications providers worldwide”, said Daniel Kurgan, CEO of BICS.
“By combining the power of TeleSign’s advanced cloud communication platform and customer base with BICS’ market-leading footprint and global reach, we are well positioned to lead the development of one of technology’s most exciting sectors.”
The deal will see BICS paying an upfront cash consideration of $230 million. It is expected to be completed in Q3 2017, subject to regulatory approval.
Once the deal is complete, TeleSign will continue to operate independently from BICS as a wholly-owned subsidiary. Current CEO Aled Miles will remain in charge.
“TeleSign has a strong business with annual revenues of around $100 million built on security and on a pedigree of innovation, with a strong portfolio of global customers,” said Miles.
“Combining our technology with BICS’ global carrier footprint, mobile operator reach and strong experience, puts us in a class by ourselves. Being the industry’s first end-to-end CPaaS means we can offer an unmatched level of business communications as we help organizations grow, engage and secure their end-users anywhere in the world.”