Conference Call on Sale to Be Held at 8 a.m. EDT, October 7th
ENGLEWOOD, Colo., Oct. 7 /PRNewswire-FirstCall/ -- CSG Systems
International, Inc., (Nasdaq: CSGS), a leading provider of customer care and
billing solutions, today announced it has reached an agreement to sell its
Global Software & Services Division assets to Comverse, Inc., a division of
Comverse Technology, Inc. (Nasdaq: CMVT), the world's leading provider of
software and systems enabling network-based multimedia enhanced communications
services, for approximately $251 million in cash, subject to certain
adjustments.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020627/CSGSLOGO )
CSG's Global Software and Services Division incorporates the Kenan FX
software and services portfolio that supports more than 150 customers
worldwide as well as the ICMS customer care and billing assets acquired from
IBM in 2002.
"This decision is part of a larger strategic planning process that the
Board and this management team started several months ago," said Ed Nafus,
chief executive officer and president of CSG Systems International, Inc. "The
divestiture of the GSS Division will allow CSG to intensify its focus on our
core competencies in the cable and DBS markets. This will allow us to
continue to provide scalable and dependable solutions that will enable our
customers to grow and transform their businesses, in addition to providing
superior customer service. We believe that the video industry is beginning to
transform their business models from providing content over their network to
one device, to providing content, anytime, to any device. I believe we are in
a unique position to enable this transformation."
"The combination of the GSS Division with Comverse will strengthen
Comverse's leadership position in the emerging converged billing software
market, and will create synergistic cross-selling opportunities into the
respective GSS and Comverse customer bases," said Kobi Alexander, Chairman and
CEO of Comverse Technology.
The transaction is expected to close by the end of January 2006 pending
government agency approvals and other certain closing conditions.
Conference Call Scheduled
A conference call with the CSG management team has been scheduled today,
October 7th, at 8:00 a.m. EDT. Participants should dial 303.262.2050 and ask
for the CSG Conference Call. A replay will be available for seven days at
303.590.3000, passcode 11041469#. You can access the conference call on the
company's website at http://www.csgsystems.com.
About CSG Systems International
Headquartered in Englewood, Colorado, CSG Systems International
(Nasdaq: CSGS) is a leader in next-generation billing and customer care
solutions for the cable television, direct broadcast satellite, advanced IP
services, next generation mobile, and fixed wireline markets. CSG's unique
combination of proven and future-ready solutions, delivered in both outsourced
and licensed formats, empowers its clients to deliver unparalleled customer
service, improve operational efficiencies and rapidly bring new
revenue-generating products to market. CSG is an S&P Midcap 400 company. For
more information, visit CSG's Web site at http://www.csgsystems.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 two largest customers, Comcast Corporation and Echostar Communications,
which combined represent approximately one-third of CSG's revenue; 2) the
continued acceptance of CSG ACP, CSG Kenan FX and their 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 broadband, wireline and wireless 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
expand and effectively operate its business internationally, which is much
more complex and carries a higher collections and currency risk; 8) CSG's
ability to renew software maintenance contracts and sell additional software
products and services to existing and new clients, both domestically and
internationally; and 9) 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 International, Inc.
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Related links:
http://www.csgsystems.com
Photo Notes:
NewsCom:
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, Corporate
Communications, +1-303-804-4962, or Investors, Liz Bauer, SVP,
Corp. Comm & IR, +1-303-804-4065, both of CSG Systems
International, Inc.
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