& cplSiteName &

NetCracker Plays End-to-End Game

Ray Le Maistre
3/26/2012
50%
50%

The proposed US$449 million acquisition of Convergys Corp. (NYSE: CVG)'s Information Management telecom software business unit will enable NEC Corp. (Tokyo: 6701)'s Service Provider Information Technology (SPIT) subsidiary Netcracker Technology Corp. to mix it up with the telecom software sector's big guns, according to Heavy Reading Senior Analyst Ari Banerjee. (See NEC to Buy Convergys Unit for $449M.)

The SPIT specialist believes the planned acquisition is a good one for NEC/NetCracker and provides Convergys IM with "a safe haven."

And it gives NetCracker the extra muscle to compete with some of the dominant forces in the telecom software sector. Closing the deal would provide NetCracker with "all aspects of BSS/OSS, which will position it very well to compete effectively with the end-to-end BSS/OSS stacks of Oracle Corp. (Nasdaq: ORCL), Amdocs Ltd. (NYSE: DOX) and Ericsson AB (Nasdaq: ERIC)," the analyst says. (See Ericsson + Telcordia: What the Analysts Say and Ericsson to Buy Telcordia.)

Banerjee adds that Convergys has been "looking for buyers for some time now and this will be good for them. There is alignment on business models as both Convergys and NetCracker are solutions/service-based companies, so there is synergy."

The analyst also notes that the Convergys IM business has "not been able to invest adequately into its products for some time now … This will hopefully change under NEC/NetCracker ownership."

— Ray Le Maistre, International Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:38:16 PM
re: NetCracker Plays End-to-End Game


Here's an interesting number related to the NetCracker/Convergys deal.


Convergys is selling its SPIT business for $449m but paid nearly $700m for the Geneva billing business in 2001...


 


See


http://www.informationweek.com/news/6505311


 

AESerm
50%
50%
AESerm,
User Rank: Light Beer
12/5/2012 | 5:38:15 PM
re: NetCracker Plays End-to-End Game


But does it matter that the 2001 deal was stock-based funny money? (CVG then about $39/share)

digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:38:10 PM
re: NetCracker Plays End-to-End Game


But the valuation is still $250 million different....


I just thought it was an interesting depreciation - I don't think it suggests that netCracker has got itself a stunning deal or that Convergys has sold itself short.

Featured Video
From The Founder
The 'gleaming city on a hill,' Steve Saunders calls it. But who is going to take us from today's NFV componentry to the grand future of a self-driving network? Here's a look at the vendors hoping to make it happen.
Flash Poll
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 10, 2017, The Westin Times Square, New York, NY
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Could the Connected Car Help Prevent Terrorism?
Dan Jones, Mobile Editor, 9/15/2017
Could 5G Have Found Its Glass Ceiling?
Dan Jones, Mobile Editor, 9/20/2017
Cities Slam FCC on Broadband Proceedings
Mari Silbey, Senior Editor, Cable/Video, 9/15/2017
1 Million Pirate Set-Top Boxes Sold in the UK
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 9/20/2017
Comcast Shuts Down OTT Again
Mari Silbey, Senior Editor, Cable/Video, 9/19/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed