Light Reading
Proposed acquisition of Convergys assets gives NetCracker a full deck, says Heavy Reading analyst

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
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.

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Razorsight Expert's Advice on Real-Time Analytics

11|27|14   |   1:43   |   (0) comments


Razorsight's powerful cloud-based Predictive Analytics solutions are used by the world's leading communications and media brands to drive smarter decisions, enable faster actions and optimize outcomes. Get expert advice.
LRTV Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Net Neutrality Even Mark Cuban Could Love
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/26/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
Why 5G Is a Different Beast
Robert Clark, 11/26/2014
Eurobites: Net Neutrality Battle Looms
Paul Rainford, Assistant Editor, Europe, 11/27/2014
New Juniper CEO Can Be Thankful for $14.5M
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2014
Like Us on Facebook
Twitter Feed