CSG to Deliver Expanded Capabilities to Support Wireless, Content, IPTV and
Business Services
ENGLEWOOD, Colo., March 1 /PRNewswire-FirstCall/ -- CSG Systems
(Nasdaq: CSGS), a leading provider of customer care and billing solutions,
today announced that it has acquired Telution, Inc., a private, Chicago-based
provider of Operations Support System (OSS) software that enable
communications companies to bring bundled, advanced services to market quickly
and effectively.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020627/CSGSLOGO )
CSG Systems has signed a definitive merger agreement to acquire Telution,
Inc. and its COMX solution to expand CSG's ability to support cable and
satellite operators as they deliver advanced IP-based services, designed to
attract and retain consumers who have begun to expect the availability of
video, voice and data services over nearly any device at the time and location
they choose.
CSG will integrate COMX's capabilities into CSG Advanced Convergent
Platform (ACP), its existing customer-centric billing and customer care
solution, accelerating its product roadmap to quickly enable operators to more
easily bundle and deploy wireless, content, business services and IPTV
offerings.
In recent months, cable and satellite operators have taken strides to lead
the converging communications market by offering bundles of new services
on-demand and over the television, Internet and through handheld devices.
"Cable and satellite operators are well positioned to increase revenues
through the incremental bundling of a variety of new services, including
wireless services, business services, IPTV, and personalized content," said
Rob Rich, Executive Vice President, Yankee Group. "The acquisition of
Telution and integration of the COMX suite with CSG's current solution will
provide its customers with more flexible, comprehensive capabilities,
especially in the areas of service bundling, complex pricing and multi-service
customer care."
Through this acquisition, CSG will extend its ability to support its
customers' sales, ordering, partnering and service provisioning processes as
well as delivering enhanced customer care capabilities through all customer
touch points -- the Web, interactive television, field service, statement, the
call center and more.
"As cable and satellite operators continue to introduce more complex
products and services, a need has emerged for solutions that can help them
manage the complexity, from both services and customer relationship
standpoints," said Mike Scott, Executive Vice President of CSG Systems. "Our
customers are facing a new era of tougher competition, increasing the pressure
to deliver more complex combinations of video, voice and data services. CSG
is evolving its solution and approach to help them compete successfully."
"Like CSG Systems, Telution has focused on helping progressive
communication companies better serve customers, offer exciting new services,
and ultimately, improve the total service experience," said Kent Steffen,
Telution President and CEO. "We are thrilled to become part of CSG Systems
and to bolster its continued progress toward helping communication companies
better compete and win through advanced software solutions."
Financial Terms and 2006 Guidance
CSG will acquire Telution for approximately $22 million in cash, which
will be paid upon closing of the transaction, which is expected by the end of
the day today. In addition, the purchase agreement provides for contingent
payments of up to $8 million over the next three years.
CSG does not expect this transaction to have a significant impact on its
expected first quarter 2006 revenues, but does expect that the transaction
will add $5 million to $7 million in revenues for the full-year 2006.
CSG expects to incur certain one-time charges related to this acquisition
in the first quarter of 2006. Excluding these one-time charges, which are not
estimatable at this time, CSG does not expect this acquisition to have a
significant impact to its overall results of operations for the first quarter
or full-year 2006.
About CSG Systems
Headquartered in Englewood, Colorado, CSG Systems International
(Nasdaq: CSGS) is the leading provider of outsourced billing, customer care
and print and mail solutions and services supporting the North American
convergent broadband and direct broadcast satellite markets. CSG's solutions
support some of the world's largest and most innovative providers of bundled
multi-channel video, Internet, voice and IP-based services. CSG's unique
combination of solutions, services and expertise ensure that cable and
satellite operators can continue to rapidly launch new service offerings,
improve operational efficiencies and deliver a high-quality customer
experience in a competitive and ever-changing marketplace. For more
information, visit our website at http://www.csgsystems.com.
About Telution
Founded in 1998, Telution has proven its ability to support the needs of
the communications market with customers such as Shaw, Sprint and SBC. For
more information about Telution and its COMX solution, visit http://www.telution.com.
This news release contains forward-looking statements as defined under the
Securities Act of 1933, as amended, that are based on assumptions about a
number of important factors and involve risks and uncertainties that could
cause actual results to differ materially from what appears in this news
release. These factors include, but are not limited to: 1) CSG's ability to
continue to perform satisfactorily and maintain good customer relations with
its three largest clients, Comcast Corporation, Echostar Communications, and
Time Warner, Inc., which combined make up over 50% of CSG's revenues from
continuing operations; 2) the continued acceptance of CSG ACP and its related
products and services; 3) CSG's ability to enhance current products and
develop new technology that will retain existing clients and capture new
market share; 4) significant forays into new markets, which may prove costly
and unprofitable; 5) the degree to which CSG's expectations of market
penetration and consumer acceptance of advanced IP services prove true -- and
even if realized, CSG's ability to meet the billing and customer care needs of
those markets; 6) client consolidation, which has decreased the number of
potential buyers for many of CSG's products and services; 7) CSG's ability to
renew contracts and sell additional products and services to existing and new
clients; and 8) CSG's ability to successfully deliver on lengthy and/or
complex implementation projects, which by their nature, carry much more risk.
This list is not exhaustive and readers are encouraged to review the
additional risks and important factors described in CSG's reports on Forms
10-K and 10-Q and other filings made with the SEC.
SOURCE CSG Systems
 back to top
Related links:
http://www.csgsystems.com
http://www.telution.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20020627/CSGSLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Media, Elise Brassell, +1-303-804-4962,
elise_brassell@csgsystems.com, or Investors, Liz Bauer,
+1-303-804-4065, liz_bauer@csgsystems.com, both of CSG Systems
|
