Redknee Buys Argent's In-Bill
TORONTO -- Redknee (AIM: RKN), a leading provider of innovative infrastructure software that monetizes and personalizes services and content for mobile operators, announces that it has completed the acquisition of 100% of the shares of Argent Networks PTY (“Argent”) from Argent Networks Limited for a cash consideration of approximately US$525,000 (NZ$675,000) plus the assumption of approximately US $270,000 in bank debt.
Argent, based in Sydney, Australia, has operations in Australia, and the United States and owns the ArgentEclipse Interconnect service, which is branded as In-Bill. In-Bill is a revenue assurance, interconnect and content settlement software solution that currently services over 10 operators. Following the acquisition, Argent’s customers and employees will be integrated into Redknee’s existing business with a view to leveraging Argent’s customer base, partner network and employees. The Directors believe that the acquisition will further strengthen Redknee’s operating model and market share, particularly among emerging market operators.
Today’s announcement supplants the two previous announcements issued on 21 December 2007 and 21 January 2008 and will see Redknee purchase only the In-Bill operations of Argent. Subsequent to the shareholders of Argent Networks Limited turning down Redknee’s prior offer on 18 January 2008, Argent Networks Limited was placed into receivership and Redknee was able to purchase the shares of Argent, which remained operating as a going concern. Prior to Redknee acquiring Argent, it operated with a small profit. Redknee plans on investing in the Interconnect product in order to strengthen its product offering and benefit from cross selling opportunities.
Based on the foregoing, Redknee re-iterates its 4 December 2007 guidance that fiscal 2008 revenues will be between CDN $45 million and $48 million.
Lucas Skoczkowski, CEO at Redknee, commented:
“Following a very disciplined process, we are delighted to have secured first class employees, excellent customers and superb software assets for Redknee. We feel that the Interconnect product is an excellent software asset that will complement our turnkey converged billing offering, enhancing our market leadership position.
The addition of Argent will have an immediate impact on our service offering and we expect it to contribute to our revenue growth in fiscal 2009. I look forward to updating the market on the integration progress over the coming 12 months."
Redknee Inc. (Toronto TSX: RKN)