SPIT Bits: M&A Mayhem

It's been a crazy week of merger and acquisition (M&A) activity in the Service Provider Information Technology (SPIT) sector, with NTT Communications Corp. (NYSE: NTT), CGI Group Inc. (NYSE: GIB; Toronto: GIB.A), Logica , Danaher Corp. (NYSE: DHR), VSS Monitoring Inc. , NEC Corp. (Tokyo: 6701) and Connectiva Systems all involved in the action. And possibly Tekelec has created a venture financing operation to provide spinoff companies with initial launch funds. (See NSN Creates Spinoff Investment Fund and M&A Interest in NSN's BSS Assets Builds.)

  • Revenue assurance specialist Connectiva Systems is about to be acquired by a Dubai-based IT services firm. For the full story, see IT Services Firm to Buy Connectiva.

  • Tekelec's new private equity owners are believed to be looking for a buyer for the company's policy control, diameter signaling router and subscriber data management (SDM) assets, with a price tag of up to $500 million being suggested. For the full rumor story, see Tekelec Back in M&A Mode.

  • NEC is to acquire the Technology Solutions business of Australian IT services firm CSG Ltd. for A$227.5 million (US$219.5 million), with an additional payment of up to A$32.5 million ($31.3 million) later, depending on post-acquisition performance. The Technology Solutions unit provides IT products and services to its government and enterprise customers. The move fits in with NEC's strategy to bolster its ICT services portfolio, but is also interesting in that it could open doors for the vendor's Netcracker Technology Corp. subsidiary, which would be able to utilize the data center, cloud and integration services to target some key enterprise verticals as well as the telecom services sector. (See NetCracker Wins Utility Deal.)

  • Speaking of NetCracker ... the SPIT giant, which has just completed an acquisition of its own, has entrenched itself further in the back-office at Sprint Corp. (NYSE: S), which is using the vendor's OSS tools to manage its Network Vision. (See Sprint Needs $3B to Fufill Its 'Network Vision'.)

    In other SPIT news:

    — Ray Le Maistre, International Managing Editor, Light Reading

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