Telecom Lead America: BSS provider CSG Systems has
acquired Ascade, a provider of trading and routing software solutions to
telecommunications companies, for approximately $19 million.
CSG is looking at establishing top position in the telecommunications
wholesale marketplace by adding Ascade’s trading and routing solution, Ascade7,
with CSG’s Wholesale Business Management Solution (WBMS).
As the leading wholesale billing provider for the
telecom marketplace, our clients have come to expect innovative solutions from
us that help expand and enhance their business operations,” said Peter Kalan,
president and chief executive officer of CSG International.
Moreover, the acquisition assists CSG to expand and
strengthen its geographic presence, bringing product specialists and support
resources closer to its combined 300+ wholesale customers.
Our acquisition of Ascade will help us continue to
deliver market-leading solutions that help our clients operate nimbly and
efficiently. Our combined offering and global presence ensures that operators
of all types – fixed, mobile, wholesale, broadband, MVNOs and ISPs – have a
partner in CSG with the breadth of functionality and flexibility in delivery
models to meet their current and evolving wholesale needs,” Kalan added.
CSG’s portfolio enables VoIP carriers to deliver better
customer service, with increasing automation and the greatest assurance for
both their retail and wholesale revenue streams.
For many carriers, their wholesale business has always
represented a significant component of their overall revenue. As their business
models evolve to address growth in areas such as digital content and M2M
services, the wholesale component becomes more complex,” said Karl Whitelock,
director OSS/BSS Strategy, Frost & Sullivan.
The approximate $19 million purchase price translates
into a revenue multiple of approximately 1.2 times 2011 Ascade revenues and
approximately 16 times 2011 EBITDA.
CSG is not updating its 2012 financial guidance today to
include the impact of the closing of the Ascade acquisition on July 13, 2012 as
the company does not expect a material impact to 2012 revenues and earnings
from the acquisition.
CSG Systems revenue up 1% to $185 million in first quarter
OSS-BSS provider CSG Systems International has posted 1
percent increase in revenue at $185 million for the first quarter of 2012
against $183.1 million for the first quarter of 2011, and $187.6 million for
the fourth quarter of 2011.