Intec acquires ADC’s billing division
The last of the large equipment providers holding onto its billing assets gave in to market realities today as ADC agreed to sell its customer care and billing software division to Intec Telecom Systems for $74.5 million in cash.
The deal, expected to close within 90 days pending approval by Intec shareholders, includes the transfer of approximately 600 employees, existing software customers and related facility space.
The software platform includes the Singl.eView revenue, transaction, billing and service management solution. Singl.eView brought in approximately $35 million in the first half of ADC’s current fiscal year (ending April 30) but had an operating loss of about $4 million. Last year it generated $92 million and lost $7 million.
Last week, ADC sold its IP Cable Business Unit and the FastFlow broadband provisioning product it acquired from the CommTech acquisition in February of 2001.
The series of software sales leaves ADC only with the Metrica service assurance platform it acquired in 1996. “We haven’t made any announcements with regards to Metrica and can’t comment beyond what we have publicly stated. Our executive management team has stated that software isn’t a strategic focus for ADC as we continue to rebuild the company on network infrastructure products and services,” said a spokesman for ADC.
Service assurance solutions have been identified by most OSS analysts as being a high priority for service providers.
Intec said in a statement two weeks ago that it was in discussions with ADC but that no deal was imminent.
The billing solution, originally from Saville Systems, which ADC acquired in June of 1999, is the primary component of ADC’s Singl.eView platform. However, it also includes a transaction and rating engine, a convergent billing engine, a commerce engine as well as customer management and life cycle management modules.
ADC held onto its OSS/BSS portfolio longer than other hardware companies such as Lucent Technologies and Nortel Networks who acquired broad software portfolios in an effort to provide end-to-end network solutions.
“When Bob Switz became CEO back in August, he was quick to determine that our strength lie in the network infrastructure products and services side. So it was determined then that certain products no longer fit with our strategy,” the spokesman said.
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© 2014 Penton Media Inc.
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