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Redknee to boost IoT plans with Orga acquisition

RCR Wireless

RCR Wireless

June 24, 2015 Redknee said the $42.5M deal will bolster real-time monetization, subscriber management

Toronto-based billing software provider Redknee Solutions said it plans to acquire privately held Orga Systems for approximately $42.5 million in a move to bolster its real-time monetization and subscriber management offerings targeting the growing “Internet of Things” market.

Redknee said the deal would be funded by cash on hand, with an expected close later this year. Orga posted approximately $67 million in revenue last year.

Orga is claimed to provide services to more than 45 customers across the communications, automotive, energy and railway industries, including BMW, America Moviles, Astelit, Avea, Telecom Italia Group and Meralco Philippines. Orga’s approximately 500 employees are expected to join Redknee following the deal.

Redknee noted Orga’s platform would be integrated into its real-time charging, policy, billing and customer care platform in a move to “accelerate and expand its reach into the growing market for IoT monetization.”

“We expect that this acquisition will be accretive and will advance Redknee’s strategy of being the largest independent provider of choice for real-time monetization and subscriber management software,” said Redknee CEO Lucas Skoczkowski. “Moreover, we expect that this will help us accelerate Redknee’s expansion into new vertical markets. I look forward to updating the market on the acquisition over the coming months.”

Last month, 451 Research reported $14.8 billion had been spent this year across 39 mergers and acquisitions related to IoT, which surpassed the $14.3 billion spent for 62 such deals in all of 2014, which itself was a record-breaking year.

“While the Internet of Things is still in its infancy in terms of industry adoption, the deal-making accelerates unabated, and we see no end in sight,” said Brian Partridge, VP of the 451 Research mobility team. “The IT service and infrastructure leaders of the future will require broad and deep competencies in IoT, and those bets are being made now. The 2015 numbers left little time to even question our prediction that market forces would accelerate deal activity beyond 2014.”

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Media Enquiries: media@redknee.com

About Redknee:
Redknee monetizes today's digital world for communications service providers. Our market-leading portfolio of monetization and subscriber management solutions includes real-time billing, charging, policy and customer care modules and is available on premise, cloud-based, or as Software-as-a-Service. With a central focus on driving customer success, Redknee's products power growth and innovation for operators globally. Established in 1999, Redknee Solutions Inc. (TSX: RKN) can be found on the Toronto Stock Exchange. For more information about Redknee, please go to www.redknee.com.


For additional information please contact:

Redknee Solutions:

Kristin Donelson
Kristin.Donelson@redknee.com
+1 905 625 2190

Investor Relations:
Katelynn Thissen
NATIONAL | Equicom
T: (416) 848-1427
kthissen@national.ca