STRATEGIC ACQUISITION WILL EXPAND REDKNEE'S FOOTPRINT WITH MOBILE TIER 1 & GLOBAL GROUP OPERATORS IN EUROPE
TORONTO, July 30 /PRNewswire-FirstCall/ - Redknee Solutions Inc. (TSX:RKN) ("Redknee"), a leading provider of business-critical software and services for communications service providers, including end-to-end converged billing, real-time charging, rating and personalization, today announced it intends to acquire privately-held Spanish-based Nimbus Systems, S.L. under an agreement between Redknee and Nimbus Systems. The acquisition is expected to close before September 30, 2010, subject to certain terms and conditions being met.
The acquisition of Nimbus Systems will further strengthen Redknee's operating model and market share, particularly in global group operators, including Telefonica, Orange and Vodafone, while providing future opportunities to expand into the Latin American markets.
Established in 2001, Nimbus Systems has been engaged in analysis, control and management solutions, with a particular focus on customer relationship management systems and billing, rating and partner relationship management. Nimbus Systems currently supports more than 10 customers, including group operators Telefonica and Telia Sonera, and non-telecommunications clients, such as Santander, Spain's largest bank, and First Data, one of the world's leading transaction credit and loyalty card infrastructure companies. Following the acquisition, Nimbus Systems' customers and employees will be integrated into Redknee's existing business with a view to leveraging Nimbus Systems' customer base, partner network and employees. The two co-founders of Nimbus Systems will assume leadership roles in business line management with Redknee.
"We are pleased to announce this important milestone in the execution of Redknee's growth strategy. The acquisition of Nimbus Systems meets all of our key acquisition criteria: increasing our access to customers; adding skilled employees in key areas to support our growth; and expanding our existing product lines with complementary offerings in post-paid billing, billing tools and customer experience management," commented Lucas Skoczkowski, Redknee's CEO. "The market, product and cultural synergies between the two companies will elevate our capabilities and market presence to better serve our customers, create cross selling opportunities for joint product and service portfolio, while positioning us to engage and win new customers."
Joao Gonçalves and Jose Martull, co-founders of Nimbus Systems commented:
"We are very excited to join Redknee. Redknee's global presence, strong reputation in the real-time billing space and its commitment to its customers make it an ideal combination to extend the power of next generation customer care and billing. Our shared vision of bringing together network and business intelligence will give service providers unrivalled next generation billing, settlement and customer experience management solutions to drive revenue and maximize their investments."
Nimbus Systems is headquartered in Madrid, Spain with offices in Lisbon, Portugal. To complete the acquisition, and subject to certain terms and conditions contained in the purchase agreement, Redknee will acquire all of Nimbus Systems' issued and outstanding shares and will pay approximately (euro)11,250,000 consisting of cash in the approximate amount of (euro)7,000,000 and the balance in common shares of Redknee.
About REDKNEE
Redknee is a leading global provider of innovative communication software products, solutions and services. Redknee's award-winning solutions enable operators to monetize the value of each subscriber transaction while personalizing the subscriber experience to meet mainstream, niche and individual market segment requirements. Redknee's revenue generating solutions provide advanced converged billing, rating, charging and policy for voice, messaging and new generation data services to over 70 network operators in over 50 countries. References to Redknee refer to the combined operations of the parent Redknee Solutions Inc, and all wholly owned subsidiaries.
Redknee(R), Redknee Solutions, and the Redknee logo are trademarks or registered trademarks of Redknee Solutions Inc. All other company, product names and any registered and unregistered trademarks mentioned (if any) are used for identification purposes only and remain the exclusive property of their respective owners.
For more information, visit www.redknee.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this release relating to the Acquisition and other statements may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this document, such statements use such words as "may", "will", "expect", "continue", "believe", "plan", "intend", "would", "could", "should", "anticipate" and other similar terminology. These statements reflect current assumptions and expectations regarding future events and operating performance and speak only as of the date of this document. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements, including, but not limited to, the failure of the parties to meet certain terms and conditions relating to the Acquisition and the factors discussed under the "Risk Factors" section of Redknee's most recently filed Annual Information Form which is available on SEDAR at www.sedar.com and on Redknee's web-site at www.redknee.com.
Although the forward-looking statements contained in this document are based upon what we believe are reasonable assumptions, we cannot assure investors that our actual results will be consistent with these forward-looking statements. We assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances, except as required by securities law.
SOURCE Redknee Solutions Inc.
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