Tekelec announced today that it will be acquiring Camiant, a policy control leader, and that the acquisition of Blueslice Networks (News - Alert), an evolved subscriber data management company is completed.
The acquisitions will allow Tekelec utilize the synergies among session, policy, subscriber data management, network and business intelligence, and mobile messaging and to help shape the definition of next-generation core networks as global service providers evolve to all-Internet protocol architectures such as long-term evolution and IP multimedia subsystem.
'Tekelec is now the only player in the industry with a portfolio solely focused on scaling the intelligence layer of all-IP networks,' said Frank Plastina, president and CEO of Tekelec. Camiant (News - Alert)'s and Blueslice's histories of innovation, market leadership, and software-centric business models enhance our ability to enable service providers to manage network complexity and enhance the user experience.'
Camiant has 30 fixed and mobile broadband customers worldwide, including Verizon, Vodafone, Sprint, Comcast (News - Alert)and Cox Communications. Camiant received the highest marks in seven of eight categories in Infonetics Research's independent survey of policy server decision-makers. Service providers familiar with the company rated it 30 percent to 40 percent higher than the nearest competitor on technology leadership, product roadmap and price-to-performance ratio.
'Tekelec's global reach, core network experience and trusted relationships with Tier 1 service providers make an ideal partnership to extend the power of policy control and create the foundation of the intelligent multi-service network, said Susie Kim Riley (News - Alert), founder and chief technology officer of Camiant. 'Our shared vision of next-generation networks will give service providers unparalleled control plane solutions -- the key tools enabling them to maximize network assets and provide subscribers with innovative new services.'
Under the terms of the Camiant merger agreement, Camiant has agreed to be acquired by Tekelec for cash consideration of approximately $130 million. The purchase price is subject to adjustment based on the amount of working capital assumed by Tekelec. The acquisition is anticipated to close within a week and is subject to customary closing conditions.
Blueslice's evolved Subscriber Data Management solutions are deployed with 19 customers worldwide. The flexibility built into Blueslice's software allow it to address the needs of mobile service providers, voice over IP (VoIP) operators, fixed-mobile convergence players and machine-to-machine (M2M) service providers, supporting consolidation and seamless sharing of subscriber information across 2G, 3G, IMS and LTE networks.
'Subscriber data is the foundation of customer-driven services and competitive differentiation. Tekelec's existing session management solutions combined with our evolved subscriber data management platform provide strong, flexible, reliable and scalable subscriber repository solutions to support a variety of applications and a seamless evolution to LTE and IMS,' said Stephan Ouaknine, president and CEO of Blueslice.
Tekelec completed the acquisition of Blueslice for total cash consideration of $35 million on May 5. Tekelec also agreed to pay a total of up to an additional $1.5 million in cash to certain Blueslice employees upon the achievement of certain integration milestones and to grant to certain Blueslice employees restricted stock units for shares having an aggregate grant date value of approximately $2 million. The restricted stock units will vest subject to the achievement of certain integration milestones.
Mobile data traffic is forecasted to grow at almost five times the pace of mobile data revenue from 2009 to 2013 according to Informa Telecoms & Media (News - Alert). In addition, annual traffic increases -- with a nearly 60 percent compound annual growth rate (CAGR) from 2009 to 2013 -- will drive more complex LTE and IMS networks and new tiered subscriber usage and pricing models, Informa Telecoms & Media said. These dynamics, combined with consumer protection regulatory requirements, require service providers to deploy more sophisticated policy controls and optimize network resources.
The acquisitions will allow Tekelec to provide service providers new real-time abilities to manage their networks based on dynamic policy control, unified subscriber profiles, and market-leading session management, including network routing data.
Tekelec's chief technology officer Vince Lesch told TMCnet that the acquisitions are an expansion of the Tekelec's overall product portfolio.
'It made sense for these acquisitions,' Lesch said. '[Camiant and Blueslice Networks'] products are successful but they needed to grow.'
That growth might come easy - Tekelec has a presence in 108 different countries.
'Our goal is to leverage these industry leading products to our customers,' Lesch said.
The acquisitions will enable service providers to deliver high-quality and differentiated broadband data services, while network operations, marketing and customer service teams will be able to transition subscribers to next-generation networks, identify new service needs, improve the quality of service, and reduce churn.
'The combination of core network and SDM technology, advanced policy controls, and subscriber data analysis gives service providers unprecedented ability to build a truly subscriber-focused business,' said Shira Levine, directing analyst of next gen OSS and policy at Infonetics Research. 'As mobile data usage and subscribers' quality expectations grow, these capabilities will be essential to proactively meet customers' needs, manage network resources and maintain high-quality service.'
Network operations, marketing and customer service teams will be able to transition subscribers to next-generation networks, identify new service needs, improve the quality of service, and reduce churn.
Alice Straight is a TMCnet editor. To read more of her articles, please visit her columnist page.
Edited by Alice Straight