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Submitted by Mike Grenville on Tue, 20 Feb 2007 13:12 |
The division has been sold to private equity buyers for £265m cash. The new company will be called Acision.
The consortium was led by Atlantic Bridge and its venture partner Larry Quinn, the former CEO and Chairman of Logica Mobile Networks from 1997 to 2003. The Atlantic Bridge consortium is 50% supported by Access Industries, a privately held, US-based industrial holding company. It is also supported by Dermot Desmond’s private equity vehicle International Investment and Underwriting (IIU) which has combined assets under management exceeding £10 billion.
In 2005, LogicaCMG Telecoms Products division generated total EBITDA of £23.0m and adjusted operating profit of £13.9m, revenues of £254.7m.
Employees To Benefit
Acision’s management team and employees will transfer with the business as part of this transaction. Quin promised that the staff would benefit from the spin off.
The new company will continue to provide its current product range of messagimg products including
Intuitive Messaging, Intelligent Charging, Content Enablement and Customer Intelligence Management.
The company employs approximately 1,700 people across 22 countries and serves over one billion end users, through its relationships with over 300 network operators and service providers and from day one will have revenues of a half billion US$.
Chris McDermott, Chief Executive of LogicaCMG Telecoms said that "Recently the objectives of LogicaCMG's consulting and integration business and those of Telecoms Products have become less aligned. This separation is a logical step for our business, enabling us to grow our channels and enhance our position as a trusted partner for network operators and service providers, while having the agility to continue to innovate and remain a global market leader."
LogicaCMG Telecoms Products pioneered SMS, and processes over half of the world's text and multimedia messages every day. In addition to maintaining its strong roots in messaging, the company also serves three out of every four videomail users, its content and messaging payment systems have processed over US$100 billion of revenues. It recently added management decision making based on real time behavioural analysis.
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