Mgmt World: TTI Next to Get Bought?
This week's show had already turned up some interesting M&A developments before chatter emerged that TTI was in talks to be acquired. (See Mgmt World: Tibco's Oh-So-Quiet OSS Acquisition and Connectiva Swallows Olista.)
And that chatter turned out to be right: Only a few hours later the Israeli firm issued a statement saying it is "currently in negotiations regarding a potential acquisition of all the shares of the Company," but that there's no guarantee a deal will be done, and no indication of the identity of the other party.
But there's at least one suggestion as to who's interested in TTI. The OSS vendor's statement was issued in response to a report by Israeli business news source Globes that TTI is in talks to be bought by Teoco Corp. for $50 million to $60 million. That report sent TTI's share price up by more than 5 percent, to $2.55, giving it a current market valuation of $41 million.
Teoco sells revenue, cost, and routing management software, and claims a whole host of telecom operator customers, including the likes of AT&T Inc. (NYSE: T), Orange Business Services , and Virgin Media Inc. (Nasdaq: VMED).
TTI is best known for its fault management products that generate about $10 million per quarter in revenues, but is also remembered for the scandal surrounding a recent acquisition. (See TTI Telecom Reports Q4, TTI Automates Fault Management, TTI Upgrades Its OSS, and TTI Completes M&A Probe.)
— Ray Le Maistre, International Managing Editor, Light Reading