Intec, a provider of software to the global telecoms industry, is has recently announced that it has agreed to acquire the operating assets of outsourced telecoms billing specialist, EUR Systems (”EUR”) of Pennsylvania, USA, from current owners Saratoga Partners.

“Intec has built a successful and profitable business in billing services and software for US carriers,” said Intec CEO Kevin Adams. “Economies of scale are important in this business, so consolidating a key competitor in the US market is a good move for us. We have already identified a number of immediate cost synergies, and we expect to be able to begin enhancing EUR’s financial performance from day one.”

The consideration, which will be paid in cash, is approximately $13.5 million*, subject to a working capital adjustment. The value of the gross assets being acquired is approximately $6.6 million. The transaction is expected to close in approximately 30 days. On closing, Intec will combine the operations of EUR into its existing North American business, and expects to be able to make the acquisition earnings enhancing in the financial year ending 30 September 2007.

EUR Systems is a privately held provider of billing services headquartered in Mechanicsburg, PA. EUR offers a number of solutions and associated services for both end-user and inter-carrier billing, primarily on an outsourced (service-bureau) basis to the North American ILEC, CLEC and IXC market. In addition, EUR acts as a Mobile Virtual Network Enabler, providing billing and back-office services to the MVNO market through its MVNGO solution. EUR had revenues of approximately $36.0 million in 2005, with EBITDA (earnings before interest, tax, depreciation and amortisation) of $6.2 million and EBIT (earnings before interest and tax) of $1.9 million.

The acquisition of EUR provides Intec with a centre of competence in outsourced billing services which, when combined with its existing Carrier Access Billing (CABS) and retail billing service bureaux, will make it one of the leading players in this market. The acquisition expands the Intec portfolio through addition of a broad range of business process outsourcing services and also provides an opportunity for Intec to increase efficiency in its existing service bureau operations through economies of scale. The EUR customer base includes over 40 telecoms service providers in North America, most of whom are not existing Intec customers, presenting an additional opportunity for cross-selling of Intec products.

*Approximately £7.3m using an exchange rate of £1 = $1.84.

About EUR Systems
Electronic and Unit Record Datacenter, Inc., t/a EUR Systems (www.eursystems.com), is a privately held provider of billing and revenue management solutions, predominantly on an outsourced basis, to incumbent and emerging telecom providers in the US. It provides end user, inter-carrier, and wholesale billing solutions enhanced with a wide variety of BPO services. The company, which was founded in 1960, is headquartered in Mechanicsburg, PA and employs approximately 270 people.

Terminology
Intec’s CABS (Carrier Access Billing) system addresses needs specific to the US local telecoms market. The 1996 Telecommunications Act created a large number of smaller alternative telecoms carriers in the US market. These carriers are regulated by complex regulations and have a particular set of requirements for their billing systems. The three types of carriers in this market are: ILEC - Independent Local Exchange Carrier; CLEC - Competitive Local Exchange Carrier; IXC - Inter-Exchange Carrier.

About Intec
Intec supplies billing software solutions to over 60 per cent of the world’s top 100 telecoms carriers and is one of the world’s fastest growing major BSS/OSS (business and operations support systems) vendors. Intec’s 350 customers include BellSouth Telecommunications Inc., Cable & Wireless, The Carphone Warehouse (UK), China Unicom, Deutsche Telekom, Eircom (Ireland), France Telecom, Hutchison 3G, O2, Orange, T-Mobile, Telefonica, Vodafone, Virgin Mobile, Vivo and Verizon. Intec works closely with its customers, many of whom have been with Intec since its inception, to provide the highest standards of performance, flexibility and robustness to help carriers service their customers effectively and profitably.

Intec’s comprehensive and expanding range of products, solutions and services includes:

- Retail billing and customer management
- Multi-service mediation and activation
- Inter-carrier billing settlements including US CABS and ITU-based settlement
- End-to-end content partner management
- Optimised wholesale routing and trading
- Real-time pre/post-paid mediation and charging
- A fully-integrated solution for IPTV charging, billing and user interaction

Founded in 1997, Intec is listed on the London Stock Exchange (ITL.L) and has over 1,600 staff and 31 offices in 25 countries. For more information, visit the Intec website at www.intecbilling.com.