Communications Lifecycle Management ("CLM") software and related services provider Tangoe has acquired telecom expense and mobility management services provider ProfitLine.
Under the acquisition, Tangoe will pay approximately $23.5m in cash, $14.5m of which was paid upon closing, $4.5m of which will be paid in 12 months and $4.5m of which will be paid in 18 months.
Tangoe expects ProfitLine to contribute approximately $0.4m in revenues during the fourth quarter of 2011, and it does not expect the acquisition to have a material impact on non-GAAP profitability.
For the year of 2012, Tangoe expects ProfitLine to contribute $14m to $15m in revenue, and the acquisition is expected to be slightly accretive to non-GAAP net income per share.
Tangoe president and CEO Al Subbloie said the addition of ProfitLine expands Tangoe customer base, broadens its vertical coverage, and provides an attractive cross-sell opportunity as we leverage Tangoe’s broader global footprint.
"Tangoe has a proven history of complementing our organic growth by successfully identifying and integrating acquisitions, which we believe is among the core competencies that made us an industry leader," said Al Subbloie.
