CSG International to buy Ascade for $19 million
Telecom Lead America: BSS provider CSG Systems has acquired Ascade, a provider of trading and routing software solutions to telecommunications companies, for roughly $19 million.
The telecommunications wholesale marketplace
CSG is looking at establishing top position in the telecommunications wholesale marketplace by adding Ascade's trading and routing solution, Ascade7, with CSG's Wholesale Business Management Solution.
"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.
"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," Kalan added.
CSG's portfolio enables VoIP (Voice over Internet Protocol) carriers to deliver better customer service, with increasing automation and the greatest assurance for both their retail and wholesale revenue streams.
"For many carriers, their wholesale business has always represented a significant component of their overall revenue. As their business models evolve to address growth in areas just as digital content and M2M services, the wholesale component becomes more complex," said Karl Whitelock, director OSS/BSS Strategy, Frost & Sullivan.
The approximate $19 million purchase price translates into a revenue multiple of roughly 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.
The first quarter of 2012 against $183
OSS-BSS provider CSG Systems International has posted 1 percent increase in revenue at $185 million for the first quarter of 2012 against $183.1 million for the first quarter of 2011, and $187.6 million for the fourth quarter of 2011.
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