Subex makes another strategic acquisition for $2mn

Subex Systems, the Rs 100-crore revenue maximisation software firm in the telecom services space, on Tuesday announced it has acquired the intellectual property rights and customers related to telecom fraud management product of US-based Mantas Inc for $2 million.

This is Subex's fifth acquisition and is being part-funded through the $10 million being raised through a GDR issue by Subex.

Subex, with this acquisition, adds customers like Verizon and BellSouth in the North American market. Mantas, for this product, had a topline of $2 million and according to Subex, the acquisition is EPS accretive and the payback is expected in 18 months' time.

Subex has a 10 per cent share of the global market for telecom revenue maximisation software with its RevMax suite. The suite consists of Ranger fraud management system, Incharge revenue assurance solution and the just-launched ONtrack subscriber risk management solution. Subex has over 80 customers across more than 40 countries and has a significant installed base for fraud management systems across the world.

According to Subex, Mantas has developed behaviour detection capabilities that enable businesses to identify risk and opportunity and provides next-generation analytical applications with these capabilities to global telecommunications markets.

"Mantas' Telecommunications Core Technology Platform (CTP) is a real-time, carrier-class data mediation, correlation, storage and presentation platform for terabytes of dynamic network and business data. Using this real-time data, Mantas-enabled applications provide powerful decision support solutions to leading fixed line and mobile communications service providers," Subex said detailing the acquisition.

Commenting on the acquisition, Subash Menon, president & CEO, Subex, said, "Apart from gaining more marquee customers in North America, this acquisition will take us closer to the $100-million mark that we have set for ourselves in FY09."

He added that besides BellSouth and Verizon, Subex gets access to two more large wireline telcos in the US market, which will boost Subex's market share in the telecom fraud management space.