Canadian network equipment provider Sandvine Inc (TSX: SVC) has acquired all of the shares of Momac BV, a Dutch specialist in customer engagement solutions for mobile operators. Sandvine bought the company for €7 million (US$$7.7 million) plus certain retention-based management incentives. It said the deal is expected to be slightly accretive to earnings in 2016 and will enhance its portfolio of revenue generation products for service providers. The Rotterdam-based Momac was acquired by European technology private equity firm Truffle Capital in 2007.
Sandvine Acquires Momac B.V.
Waterloo, Canada; August 4, 2015 – Sandvine, (TSX:SVC) a leading provider of intelligent network policy control solutions for fixed and mobile operators, today announced that it has acquired all of the shares of MoMac B.V. (“Momac”), a Netherlands-based company that sells cloud-based, customer engagement solutions to mobile operators.
Sandvine has purchased all of the shares of Momac in exchange for €7 million (approximately $7.7 million USD), plus certain retention-based management incentives. Momac has 26 employees, based in Rotterdam. Sandvine expects that the acquisition will not have a material impact to revenue nor earnings in fiscal 2015, and expects the acquisition to be slightly accretive to earnings in 2016.
Momac will enhance Sandvine’s portfolio of Revenue Generation products for its communications service provider (CSP) customers. Specifically, Momac’s products will work with Sandvine OutReach to significantly enhance its customer engagement capabilities, such that subscribers are presented with the most relevant message, offer or alert at the right time, on any screen, such that they can take immediate action.
“Momac’s products have been primarily used by a CSPs’ marketing organizations to rapidly enable promotion and sales of different offerings directly to subscribers. Together, we will build on that capability to create communications campaigns for subscribers that cover a number of use cases, including advice-of-usage, contextual upsell, self-care management, and many others,” said Dave Caputo, Sandvine’s President and CEO. “Momac offers a product that requires no custom development by the CSP and only a small amount of integration with IT systems. CSPs can dramatically reduce their time-to-market for communication campaigns and promotions, compared to the traditional path of custom development through internal IT teams or outsourced OSS vendors.”
Momac’s products are hosted in the cloud and can be delivered as a subscription or revenue-share service to CSP customers, currently comprising mobile operators in 12 countries.
“We are excited to make Momac part of the Sandvine team. This acquisition represents a natural extension of a number of our core strategies. It helps our customers move quickly to create new revenue streams, improves CSPs’ communications with subscribers, and grows Sandvine’s portfolio of cloud-based solutions that will help us continue to develop a meaningful recurring revenue model,” added Caputo.
Sham Careem, Momac’s co-founder and CEO, said, “By combining our product capabilities with Sandvine OutReach, and enabling them with Sandvine’s ability to detect and take action on network conditions in real time, our offerings will become that much more valuable to a CSPs’ marketing organization. We look forward to having an immediate opportunity to increase the value of Sandvine OutReach and demonstrate that value to Sandvine’s customer base around the world.”
Sandvine’s network policy control solutions add intelligence to fixed, mobile and converged communications service provider networks to enable services that can increase revenue and reduce network costs. Powered by Sandvine’s Policy Engine and SandScript policy language, Sandvine’s networking equipment performs end-to-end policy control functions including traffic classification, and policy decision and enforcement across the data, control and business planes. Sandvine’s products provide actionable business insight, the ability to deploy new subscriber services and tools to optimize traffic while enhancing subscriber Internet quality of experience.
Sandvine’s network policy control solutions are deployed in more than 250 networks in over 90 countries, serving hundreds of millions of data subscribers worldwide, www.sandvine.com.
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