WATERLOO, ON, Aug. 4, 2015 /CNW/ - 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.
Certain statements in this release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements") and are made pursuant to the "safe harbour" provisions of such laws. Statements related to the scope of deployment of Sandvine's products by a specific customer, the potential revenue opportunity with any particular customer or in any market segment, the benefits of Sandvine's products and services to be realized by customers, Sandvine's market position, future opportunities, product development plans and demand for Sandvine's products and services are forward looking statements, as are any statements relating to future events, conditions or circumstances. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements involve both known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Sandvine to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks and uncertainties include, without limitation, risks associated with any acquisition or disposition activities; the successful integration of acquired companies; changes in internal deployment strategies or plans by specific customers; the growth of broadband internet usage and levels of capital spending on broadband network management systems; the timing of orders and manufacturing lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; increased competition in the broadband network equipment industry; dependence on the timely development and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks including dependence on key suppliers and key technologies; dependence upon indirect channel sales and resellers; factors such as business and economic conditions and growth trends in the broadband network equipment industry and in various geographic regions; global economic conditions and uncertainties in the geopolitical environment including the impact of regulation related to the internet and the delivery of internet services. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Sandvine does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except to the extent required by applicable law.
For further information: INVESTOR CONTACT: Rick Wadsworth, Sandvine, +1 519 880 2400 ext. 3503, firstname.lastname@example.org; MEDIA CONTACT: Dan Deeth, Sandvine, +1 519 880 2232, email@example.com