Redknee Solutions buys unit from Nokia Siemens, adds 1,200 employees

TORONTO – Redknee is buying Nokia Siemens Networks’ business support systems division and acquiring about 1,200 employees in a deal worth up to US$52-million that will expand the Toronto-area company’s global footprint.

The acquisition will increase the global footprint of Redknee Solutions Inc. (TSX:RKN) to more than 90 countries across Europe, Asia Pacific, the Middle East and Africa, the company said.

Redknee, based in Mississauga, Ont., provides infrastructure software for mobile networks. Nokia Siemens is a partnership between Nokia of Finland, one of the world’s biggest cellphone makers, and the German industrial giant Siemens.

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“This planned acquisition marks a significant milestone in Redknee’s long-term growth strategy,” Redknee CEO Lucas Skoczkowski said in a news release.

“It would add strong long-standing relationships with new Tier1 operators and expand Redknee’s market share and presence in high growth markets,” he said.

The Nokia Siemens business support systems division provides real-time charging, rating, policy, and customer service to more than 130 communication service providers, including half of the top 100 global mobile operators.

Redknee will pay US$19.6 million in cash plus a maximum of US$32.7 million post closing. The deal is expected to close in the first half of 2013.

Nokia Siemens Network CEO Rajeev Suri said the transaction supports the company’s transformation to a mobile broadband company.

Redknee also released its fourth-quarter financial results on Wednesday.

Net income increased to US$1.9 million or three cents per share, compared with $700,000 or a penny per share in the same quarter in 2011. Revenue for the fourth quarter remained flat at $14.5 million compared to same year-ago quarter.