TORONTO, June 23, 2015 /CNW/ - Redknee Solutions Inc.
(TSX: RKN), a leading provider of real-time monetization and
subscriber management software, today announced it has reached a
definitive agreement to acquire privately held Orga Systems for a
total cash consideration of €38M. Orga's technology and expertise
will enhance Redknee's real-time monetization and subscriber
management platform for communication service providers and the
Internet of Things (IoT). Orga Systems provides monetization
solutions to more than 45 customers in the communications,
automotive, energy, and railway industries. Orga's highly skilled
team of more than 500 employees across Europe, Middle
East, and Africa (EMEA),
the Americas, and Asia Pacific
will join Redknee, further broadening its global reach. Orga
Systems' 2014 revenue was approximately €60M, with recurring
revenue of greater than 45%. The acquisition will be funded through
available cash on hand.
Redknee's acquisition of Orga Systems marks a milestone in the
execution of the Company's long-term growth strategy by increasing
Redknee's market share with customers across telecom and
non-telecom industries. Orga's product suite addresses the need for
innovative monetization solutions for telco and non-telco
customers. When integrated with Redknee's real-time charging,
policy, billing and customer care platform, the combined product
suite will enable Redknee to accelerate and expand its reach into
the growing market for IoT monetization.
"We are excited to add and welcome Orga Systems employees,
customers, partners and software portfolio to the Redknee family,"
said Lucas Skoczkowski, CEO of Redknee. "This acquisition combines
two of the leading real-time monetization software companies. We
are committed to ensuring the continued success of Orga's
customers, by delivering to them our market-leading technology and
services capabilities."
Mr. Skoczkowski added: "As we move forward with the integration,
we will leverage our combined product portfolio to expand and
enhance our best-of-suite customer focused solutions. We will
continue to focus on delivering innovative software solutions. We
expect that this acquisition will be accretive and will advance
Redknee's strategy of being the largest independent provider of
choice for real-time monetization and subscriber management
software. Moreover, we expect that this will help us accelerate
Redknee's expansion into new vertical markets. I look forward to
updating the market on the acquisition over the coming months."
Wolfgang Kroh, CEO of Orga
Systems added: "We are convinced that by joining forces with
Redknee we have laid the foundation for future success and growth
to the benefit of our customers, partners and employees."
Since 1993, Orga's portfolio of real-time software products and
consulting services has been designed for living in a connected
world. Telecommunications providers, energy suppliers, railway
companies and car manufacturers such as BMW have relied on Orga
Systems. Long term customers include America Moviles, Astelit,
Avea, BMW, Telecom Italia Group and Meralco Philippines.
The acquisition is anticipated to close in the fourth quarter of
fiscal 2015. The acquisition is subject to final agreement on
customary terms and conditions. The acquisition would be a
significant acquisition for Redknee under applicable securities
laws and, accordingly, Redknee will file a Business Acquisition
Report within 75 days following the closing of the acquisition.
A material change report will be filed with the Canadian
securities regulators shortly and will be available at
www.sedar.com and at Redknee's website at www.redknee.com.
Forward-Looking Statements
Certain statements in this
document 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. Forward-looking
statements are provided for the purpose of providing information
about management's current expectations and plans relating to the
future. Persons reading this news release are cautioned that such
information may not be appropriate for other purposes.
Such forward-looking statements include statements regarding the
completion of Redknee's acquisition of Orga Systems, the
combination of the two companies' product lines and the enhancement
of Redknee's platform, the expansion of Redknee's market reach into
new and existing markets, and the transaction being accretive to
Redknee. 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 Redknee to satisfy the closing conditions to the
acquisition of Orga Systems, a material adverse change in the
affairs of Redknee or Orga Systems, challenges in integrating the
businesses and product lines of Redknee and Orga Systems, the
inability of Redknee's and Orga Systems products to perform as
expected, and the factors discussed under the "Risk Factors"
section of Redknee's most recently filed AIF which is available on
SEDAR at www.sedar.com and on Redknee's web-site at
www.redknee.com. Other unknown or unpredictable factors or
underlying assumptions subsequently proving to be incorrect could
cause actual results to differ materially from those in the
forward-looking statements.
Although the forward-looking statements contained in this
document are based upon what Redknee believes are reasonable
assumptions, Redknee cannot assure investors that our actual
results will be consistent with these forward-looking statements.
Redknee assumes no obligation to update or revise these
forward-looking statements to reflect new events or circumstances,
except as required by securities law.
About Redknee:
Redknee is a leading global provider of
innovative software products, solutions and services. Redknee's
award-winning solutions enable service providers to monetize new
services, business models and content and to deliver a connected
customer experience - through either SaaS or on-premise based
solutions. Redknee's real-time monetization and subscriber
management platform provides innovative converged charging,
billing, policy management, and customer care solutions for over
200 communications service providers and is supporting service
providers to monetize digital services across utilities and smart
meters, transportation, connected homes and vehicles, and other
enterprises that are emerging from the growing ecosystem of the
Internet of Things (IOT). Established in 1999, Redknee
Solutions Inc. (TSX: RKN) is the parent of the wholly-owned
operating subsidiary Redknee Inc. and its various subsidiaries.
References to Redknee refer to the combined operations of those
entities. For more information about Redknee and its solutions,
please go to www.redknee.com.
SOURCE Redknee Solutions Inc.