Intec is moving into retail billing with Singl.eView buy.
A string of acquisitions has made UK-based Intec a major force in the interconnect and mediation space but, with the purchase of Singl.eView, it now moves into a market where contracts are typically five to ten times larger.
There are more than 70 tier 1 and tier 2 carrier clients for Singl.eView software in 17 countries and Intec said the acquisition would add over 50% to its revenue, which was GBP50.6 million in the year to September 30, 2003. This forecast is cautious because Intec is still undertaking an audit of recent Singl.eView figures. But ADC’s announcement on the deal said that Singl.eView generated sales of $92 million in the year to October 31 and an operating loss of around $7 million.
Intec is confident that it has a good deal and forecast that the acquisition would enhance earnings in the first full year of ownership to September 30, 2005. It believes it has bought at a good time, as Singl.eView suffered from the recent decline in carrier spending and most of the losses it recorded were related to cutbacks in the operation.
Nonetheless, the acquisition will be a huge test of the caliber of Intec’s management in absorbing an operation of Singl.eView’s size. The acquired operation has 400 professional services staff compared with the 250 employed by Intec, as the split between software and services on Singl.eView deals tend to be 50-50.
It will also pitch Intec against some huge competitors such as Amdocs and Convergys. However, Hutchison 3G, one of Europe’s first 3G wireless carriers, used Singl.eView, and Intec believes that its ability to deal with the complexities of billing for voice and data puts it in a good position as mobile carriers upgrade their software.
