ADC agreed to sell its customer care and billing software division to Intec Telecom Systems, a supplier of Operations Support Systems (OSS) for fixed, mobile and next-generation networks, for $74.5 million in cash. Intec will assume control of ADC's customer care and billing software offerings including approximately 600 employees, current relationships with existing software customers and related facility space. ADC's customer care and billing software platforms include Singl.eView, a complete revenue, transaction, billing and service management solution that resides at the core of the OSS and business support systems (BSS).
In ADC's fiscal first half ended April 30, 2004, Singl.eView sales were approximately $35 million with an operating loss of approximately $4 million, after direct expenses only. In ADC's fiscal year ended October 31, 2003, the Singl.eView product line generated sales of approximately $92 million and an operating loss of approximately $7 million, after direct expenses only.
ADC said the sale advances its strategy to focus on product and service offerings for the infrastructure layer of the network.
Intec Telecom Systems is a supplier of packaged interconnect billing and settlement software. It also supplies "convergent mediation" and telecom Fraud Management solutions. http://www.adc.com
- In May 2004, BigBand Networks will acquire the IP Cable Business Unit of ADC Telecommunications, including its Cuda and FastFlow product lines, for an undisclosed sum. ADC will become a minority interest holder in BigBand Networks as part of the agreement. The acquisition does not include the Homeworx cable telephony system that had also been a part of the business unit. BigBand Networks will continue sales and full service for Cuda and FastFlow customers, including operation of technology and business activities in Westborough, Massachusetts, as well as other associated U.S. and international facilities. ADC's Cuda CMTS (cable modem termination system) is a widely deployed and carrier-class platform for switching and routing of advanced IP services, and the FastFlow Broadband Provisioning Manager is a server suite that activates and configures such services.
- In March 2004, ADC agreed to acquire the KRONE Group, a global supplier of copper- and fiber-based cabling products, from GenTek Inc.. The deal was valued at approximately $350 million, of which ADC will pay cash of approximately $291 million and assume certain defined liabilities consisting principally of KRONE's pension obligation for its German workforce.
- ADC said the KRONE acquisition makes "a perfect fit" with its new strategic initiative to become the leader in global network infrastructure solutions and services. The combined company is expected to have a worldwide market leadership position in copper and fiber central office infrastructure cabling solutions, as well as a leading market share position in enterprise structured cabling systems. KRONE has more than 2,000 employees, eight factories and five research and development centers around the world.
