ECtel Integrated Revenue Management Announces Acquisition of Revenue Assurance Solution Provider Elron Telesoft
ECtel, a leading global provider of Integrated Revenue Management(TM) (IRM(TM)) solutions, announced today the signing of a definitive agreement to acquire Elron Telesoft, a prominent revenue assurance solution provider. With the acquisition, which is expected to be closed at the end of the month, ECtel enhances its position in the revenue assurance market, and expands its comprehensive IRM(TM) offerings.
At the closing of the transaction, ECtel will purchase all of the outstanding share capital of Elron Telesoft Ltd. and Elron Telesoft Export Ltd. from their parent company, Elron Electronic Industries Ltd. (Nasdaq:ELRN), in consideration for US$2.1 million in cash. The seller will be entitled to receive an additional US$400,000 if certain milestones are achieved by Telesoft during 2006. The acquisition is subject to customary approvals and closing conditions.
Telesoft brings to ECtel its flagship RAP product, a cutting-edge solution that manages all revenue-related business processes for communications service providers (CSPs). RAP effectively complements CashView(R), ECtel’s best-in-class cost and revenue assurance solution for interconnect, CDR and SS7 reconciliation. This combination will allow ECtel to provide CSPs with a flexible, end-to-end solution that addresses all of their revenue assurance needs.
“Operators are facing growing revenue leakage that affects both their top and bottom line. As a result, they have made revenue assurance a top priority,” said Eitan Naor, ECtel’s President and CEO. “We are committed to offering CSPs the very best in revenue assurance solutions. As part of our long-term strategy, we are expanding our recently-launched IRM(TM) product framework with Telesoft’s RAP, an excellent product that audits and controls end-to-end revenue-related processes. We have selected Telesoft since it provides outstanding value to operators, addressing their growing revenue assurance needs.”
The acquisition strengthens ECtel’s global sales presence and tier-one customer base in the US, Western Europe, and Asia Pacific. It also significantly expands ECtel’s revenue assurance domain expertise through the addition of Telesoft’s vast industry experience.
“We are proud of our success in building a winning product that serves tier-one operators,” said Benny Yehezkel, Elron Telesoft’s CEO. “Telesoft is delighted to become an integral part of ECtel, a leading revenue assurance player. By joining forces with ECtel, we believe we are well positioned to provide the industry’s leading revenue assurance offering.”
