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Comverse Completes Acquisition of VoIP Application Leader Netcentrex S.A.
NEW YORK, NY, May 23, 2006 – Comverse Technology, Inc. (NASDAQ: CMVT), today announced that its subsidiary, Comverse Ltd., completed its acquisition of privately-held Netcentrex S.A., for approximately $159 million in cash, subject to certain post-closing adjustments and a contingent earnout of up to $16 million based upon achievement of certain financial targets by the Netcentrex business.
The combination of Netcentrex, a leader in network-based software enabling IP-based voice-video-data (“triple-play”) and FMC (fixed-mobile convergence) solutions, with Comverse’s portfolio of value-added services and billing solutions, is expected to benefit operators deploying services in the VoIP (Voice-over-Internet Protocol) and IMS (IP Multimedia Subsystem) domains.
Raz Alon, interim Chief Executive Officer of Comverse Technology, said, “The acquisition of Netcentrex is yet another example of our strategy to augment the strong product portfolio and market presence of our business units with talented people and leading technologies focused on emerging growth opportunities. We believe this combination opens new avenues of growth for Comverse, and strengthens its position as a leader in VoIP- and IMS-related solutions.”
Zeev Bregman, Chief Executive Officer of Comverse, Inc., the company’s network systems subsidiary, 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 3M live VoIP lines), together with Comverse Inc.’s telecom value-added services and billing leadership, create a synergetic, unique VoIP, FMC and IMS offering serving wireless, cable, fixed, MVNO and Internet-based communication service providers.”
Olivier Hersent, Chairman and CTO of Netcentrex, said, “We are pleased to join the Comverse team. We believe the combination of Comverse and Netcentrex will benefit our customers, and will enable us to be a leading provider in the emerging IMS and FMC domains.”
Netcentrex brings to Comverse, Inc. 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 acquisition is projected to be neutral to the company’s fiscal 2006 (year ending January 31, 2007) pro forma net income. Pro forma net income excludes the impact of, among other items, purchase accounting adjustments related to the write-down of deferred revenue, amortization of intangibles, and other acquisition-related costs.
About Comverse Technology, Inc.
Comverse Technology, Inc. (NASDAQ: CMVT), through its Comverse, Inc. subsidiary, is the world’s leading provider of software and systems enabling network-based multimedia enhanced communication and billing services. The company’s Total Communication portfolio includes value-added messaging, personalized data and content-based services, and real-time converged billing solutions. Over 450 communication and content service providers in more than 120 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. Other Comverse Technology subsidiaries include: Verint Systems (NASDAQ: VRNT), a leading provider of analytic software-based solutions for communications interception, networked video security and business intelligence; and Ulticom (NASDAQ: ULCM), a leading provider of service enabling signaling software for wireline, wireless and Internet communications. Comverse Technology is an S&P 500 and NASDAQ-100 Index company.
For additional information, visit the Comverse website at www.comverse.com or the Comverse Technology website at www.cmvt.com
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