CSG International Announces the Acquisition of Ascade
CSG Systems International, Inc., a global provider of software and services-based business support solutions that help customers generate revenue and maximize customer and partner relationships, today announced the acquisition of Ascade, an independent Swedish software company who provides market-leading trading and routing software solutions to telecommunications companies globally. The total cost of the acquisition, excluding transaction fees, was in broad outline $19 million. The purchase price was paid in cash from CSG's existing cash resources.
The same time Ascade's flagship trading
By bringing at the same time Ascade's flagship trading and routing solution, Ascade7, with CSG's Wholesale Business Management Solution, CSG firmly establishes its global leadership position in the telecommunications wholesale marketplace. The acquisition expands and strengthens its geographic presence, bringing product specialists and support resources closer to its combined 300+ wholesale clients worldwide.
"As the leading wholesale billing provider for the telecom marketplace, our customers 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, Inc. "Our acquisition of Ascade will help us continue to deliver market-leading solutions that help our customers 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."
As telecom carrier partnerships expand and become more complex, the number of VoIP (Voice over Internet Protocol) carriers is as well growing as is the number of wholesale relationships with third party content owners. CSG's extensive product portfolio enables these carriers to deliver best-in-class customer service in this dynamic marketplace, with increasing automation and the greatest assurance for both their retail and wholesale revenue streams, a critical capability in this complex and ever-changing environment.
The approximate $19 million purchase price translates into a revenue multiple of in broad outline 1.2 times 2011 Ascade earnings and roughly 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 earnings and revenues from the acquisition. CSG will provide updated 2012 non-GAAP financial guidance to reflect the impact of the acquisition on its regularly scheduled Q2 2012 revenues call on August 7, 2012. The final estimated impact on GAAP results will not be known until CSG completes the purchase accounting for the acquisition later in the year.
CSG InternationalLiz BauerSVP Investor Relations, Strategic Communications303firstname.lastname@example.orgRob KunzlerVice President, Global Marketing312email@example.com
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