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Redknee snaps up troubled billing firm Orga

Rethink Wireless

Rethink Wireless

June 25, 2015 Canadian firm continues its M&A spree, to build a broad BSS platform and challenge Amdocs and Netcracker

Canada's Redknee has been using canny acquisitions and early moves into hosted services to become a significant challenger to BSS giants like Amdocs, Ericsson and NEC Netcracker. Its latest move is to snap up troubled German converged billing firm Orga Systems to enrich its real time monetization platform.

The deal was a fire sale for Orga, with Redknee paying just €38m ($42.6m) to win a company with a troubled financial track record (it was declared insolvent in April this year and forced to seek a buyer), but a strong billing and charging system and some loyal customers. Redknee says Orga's software will be complementary to its growing range of premises-based and hosted BSS offerings, which include converged billing, policy and customer experience management.

Orga's dowry also includes a customer base of 45 which goes beyond telcos into the rail, automotive (including BMW) and energy sectors, and revenues of €60m a year. Telco customers include Telecom Italia.

Redknee's CEO Lucas Skoczkowski, who has made several bold moves - including acquiring Nokia's BSS activities in 2012 - to build his company into a $260m business, emphasized this potential for market diversification in his statement, saying: "We expect that this will help us accelerate Redknee's expansion into new vertical markets."

He also said: "This acquisition combines two of the leading real time monetization software companies … 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."

Given that Orga is lossmaking, the accretiveness will presumably come from cost-cutting, especially where the new platforms overlap with Redknee's existing real time billing offerings. Orga's flagship is the GOLD convergent charging and billing engine.

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About Redknee:
Redknee monetizes today's digital world. We provide a complete portfolio of mission-critical monetization and subscriber management solutions, including real-time billing, charging, policy and customer care modules, which allow Communications Service Providers to charge for things in new and innovative ways and create a unique user experience. Available on premise, cloud-based, or as a Software-as-a-Service, Redknee's low-risk, flexible solutions power more than 250 businesses across the globe. Established in 1999, Redknee Solutions Inc. (TSX: RKN) is the parent of the wholly-owned operating subsidiary Redknee Inc. and its various subsidiaries.

References to Redknee refer to the combined operations of those entities. For more information about Redknee and its solutions, please go to www.redknee.com.

For additional information please contact:

Redknee Solutions:
Michaela Radman, Corporate Communications
Michaela.Radman@redknee.com
+1 905 625 2190

Investor Relations:
Conrad Seguin
NATIONAL | Equicom
T: (416) 586-1951
cseguin@national.ca