Strength to Product Portfolio and Expands US Presence
August 3, 2005, Israel - MIND CTI Ltd. (NASDAQ: MNDO), a leading
global provider of real-time mediation, rating, billing and customer
care solutions for pre-paid and post-paid multiple services, today
announced that it has signed a definitive agreement to acquire Sentori,
Inc., a leading provider of customer care and billing solutions to
wireless carriers and mobile virtual network operators (MVNO's).
Sentori provides billing and customer care software solutions mainly to
mobile carriers and MVNO's. Sentori is based in the Washington, DC metro
area, has about 20 employees and supports about 16 customers in the US,
the Caribbean and Central America.
"We are pleased with this acquisition that satisfies the criteria we
defined: proven revenue generation, complementary technology and
geography and expected accretion to earnings within two to three
quarters. The US market has become more active lately and MIND is
especially suitable for both the VoIP opportunities and now for the MVNO
opportunities as well." said Monica Eisinger, chief executive officer of
MIND. "In addition to the significant customer base and valuable partner
relationships, MIND will gain a team of highly experienced professionals
in the wireless telecommunications industry located in Silver Spring,
Sentori will operate as the Americas headquarters for MIND. The new
division will continue to be led by Michael Halley, president of Sentori,
and the current management team. Halley has been with Sentori since
2000, serving as vice president of professional services from 2002 to
2004 and leading the company as president & CEO since December 2004. He
has more than fifteen years of international business experience in
telecommunications and information technology and has expertise in
program management and management consulting. Prior to joining Sentori,
Halley served as acting-CEO for SMTC, a St. Maarten telecommunications
provider. Prior to that, he headed up the management consulting division
for KMPG Aruba. He holds a BA in economic sociology and an MBA, both
from Erasmus University in Rotterdam, The Netherlands.
"The team at Sentori is definitively enthusiastic about becoming part of
a larger, public company with both global reach and financial strength.
This transaction allows Sentori to better support its customers by
combining and enlarging the engineering and deployment teams." said
Michael Halley, president of Sentori Inc. "Our existing and potential
customers will benefit now that we can offer more comprehensive products
and capabilities as well as improve time-to-market initiatives and
implementation strategies for complex projects for carriers offering
service bundles that include voice, data, and video."
Arie Ganot, chief financial officer of MIND commented: "Under the terms
of the acquisition, MIND will acquire Sentori for $5.1 million in cash.
The transaction is expected to be neutral to earnings per share,
excluding acquisition-related items, in the third and the fourth quarter
of fiscal 2005, and accretive to earnings per share, excluding
acquisition-related items, in fiscal 2006 and thereafter. MIND will
incur a one-time charge in its third fiscal quarter ending September 30,
2005 to account for certain costs related to the acquisition. MIND’s
revenues for the third quarter of 2005 are expected to reach $4
The acquisition is anticipated to be completed shortly, subject to
customary closing requirements.
MIND CTI Ltd. (http://www.mindcti.com) is a leading global provider of
real-time billing and customer care solutions for pre-paid and post-paid
voice, data and video. Since 1997 MIND has been a pioneer in enabling
the VoIP technology for emerging and incumbent service providers. MIND
solutions include “best-in-class” solutions for Service Enabling of IP
services in the wireless arena, end-to-end convergent billing solutions
and internal billing for large enterprises. MIND operates from offices
in Europe, Israel, the United States and China. For financial
information, reports and presentations, please visit the Investor
Relations site: http://www.mindcti.com/ir.
Founded in 1994, Sentori delivers highly flexible and scalable
billing and customer care software solutions to telecommunications
carriers worldwide. Led by its flagship product - the Sentori® Billing
and Customer Care system - Sentori is helping emerging 3G mobile
carriers, mobile virtual network operators (MVNOs) and other
communications service providers acquire and retain high value customers
by giving them control of the entire customer management process. The
company is widely recognized for its product, its customer support, and
its outstanding record of on-time and in-budget delivery. For more
information on Sentori, please visit www.sentori.com.
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