Monday, April 10, 2006

Comverse to Acquire Netcentrex for Softswitching

Comverse will acquire privately-held Netcentrex S.A., a supplier of next generation network (NGN) voice and video solutions.

Comverse provides value-added messaging and real-time converged billing solutions for network operators. The deal was valued at approximately $164 million in cash, subject to certain adjustments and a contingent earnout of up to an additional $16 million.

The companies said their merger addresses the market opportunity for VoIP, fixed mobile convergence (FMC) and IMS. The combined product portfolio would enable converged voice-video-data solutions, serving wireless, fixed, cable, MVNO and Internet-based communication service providers.

Netcentrex brings to Comverse a broad suite of software-based converged voice-video-data-over-IP solutions, supporting the consumer and enterprise offerings of approximately 50 service providers, including AOL Germany, Comunitel (Tele2), Fastweb, France Telecom, Telefonica Deutschland GmbH and Tiscali.

For the year ended December 31, 2005, Paris-based Netcentrex generated revenues of approximately $50 million. The merger is expected to close in July.

Zeev Bregman, CEO of Comverse, said, "Netcentrex complements our product portfolio, technology, and strategic direction. Netcentrex's leading telco-grade application server, rich IP Centrex, Class 5 and video services and proven market position (with over 2.8M live VoIP lines), together with Comverse's telecom VAS and billing leadership, create a synergetic, unique VoIP, FMC and IMS offering."


  • France Telecom's residential Voice over IP services, running on Netcentrex solutions, have exceeded 1 million lines in commercial service across 5 countries at the end of 2005: France, UK, Netherlands, Italy and Spain. The initial installation in 2004. After 18 months of service, the deployment rate exceeds 150,000 new subscribers every month across Europe.

  • Netcentrex has previously disclosed three rounds of funding totaling $34 million. Key investors included CDC Innovation Partners, Crescendo Ventures, Innovacom Venture Capital, Intel Capital, Natexis Investissement, Newbury Ventures, T-Venture, and Viventures.