Subex signs deal to sell activation business to NEC's NetCracker
20 September 2011
Telecom software products provider Subex Ltd has entered into an agreement to sell its activation business to NetCracker, leading telecom OSS player and part of the $40-billion NEC Group. However, the financial details were not divulged.
The company's share price rose by over 5 per cent in opening trades, even though the announcement was made much before market hours.
The activation business that is being sold off consists of service fulfilment solution, a host of solutions including NetProvisioning, NetOptimizer and Vector, it said in a statement.
The activation business consists of service fulfillment solutions, a host of products that include NetProvisioning, NetOptimizer and Vector.
''The market is changing and so are the operator's needs, to remain competitive. Market evolution is towards solutions that allow CSPs to combine data with insights to trigger customer centric near real time decisions. This enables operators to deliver superior customer experience profitably," said Subex system's founder chairman, managing director and chief executive officer Subash Menon.
The decision to sell its activation business follows a change in Subex's strategy to focus on its core products.
Menon said, "Being the leader in the business optimisation space, Subex is strategically positioned to take advantage of these growth areas through its return on captial (ROC) and managed services portfolio. Hence we have taken a strategic decision to focus on our core products, i.e. ROC Solutions (revenue assurance, fraud management, partner settlement, data integrity m anagement, etc) and managed services.''
''This decision and the renewed focus will enable us in growing our revenues over 20 percent annually with positive growth in EBITDA and will make us a significant force in the industry,'' he further added.
Subex estimates its current qualified pipeline for continuing business is worth $350 million.