Tangoe, Inc. Announces the Acquisition of Symphony Teleca’s Telecom Expense Management Business
Tangoe, Inc. (NASDAQ: TNGO), a leading global provider of Communications Lifecycle Management (CLM) software and services, announced that it has acquired the Telecommunications Expense Management Business of Symphony Teleca (TEM Business), in a transaction that closed today, August 8, 2012. Under the terms of the acquisition agreement, Tangoe will pay approximately $41.0 million in cash, less certain adjustments, approximately $30.0 million of which was paid at closing, less certain adjustments, approximately $4.5 million of which will be paid in 6 months, and approximately $6.5 million of which will be paid in 12 months, in each case less certain adjustments, and may also pay an additional $4 million in cash under an earn-out payable based on the achievement of revenue targets for the acquired business for periods through June 30, 2013. As part of the transaction, Tangoe will be acquiring a balance sheet for the TEM Business, which includes net positive assets of approximately $4.0 million.
“We are very excited to announce the acquisition of Symphony Teleca’s TEM Business, which we expect will enhance Tangoe’s relationship with key channel partners and further expand our customer base globally. The rich product development legacy of Symphony Teleca’s TEM Business complements our innovation focus and its offices in Dallas, TX, Nashville, TN and Bangalore, India extend Tangoe’s worldwide presence and regional expertise,” said Al Subbloie, president and CEO of Tangoe. “Symphony Teleca’s TEM Business provides attractive cross-sell opportunities over the long-term particularly with our mobile device management (MDM) and real time expense management (rTEM) solutions. Tangoe has a proven ability to successfully identify and integrate acquisitions, which we believe is among the core competencies that made us an industry leader.”
Symphony Teleca’s TEM Business delivers a suite of fully integrated fixed and mobile telecommunication expense management solutions deployed across a range of industries, including technology, manufacturing, financial services, pharmaceutical and healthcare, and government. The company was placed in the “visionaries” quadrant in Gartner’s 2012 Magic Quadrant for Telecommunications Expense Management1.
Tangoe is a leading global provider of Communications Lifecycle Management (CLM) software and services to a wide range of global enterprises, including large and medium-sized businesses and other organizations. CLM encompasses the entire lifecycle of an enterprise’s communications assets and services, including planning and sourcing, procurement and provisioning, inventory and usage management, mobile device management, invoice processing, expense allocation and accounting and asset decommissioning and disposal. Tangoe’s Communications Management Platform (CMP) is an on-demand suite of software designed to manage and optimize the complex processes and expenses associated with this lifecycle for both fixed and mobile communications assets and services. Tangoe’s customers can also manage their communications assets and services by engaging Tangoe’s client service group.
Additional information about Tangoe can be found at www.tangoe.com. Tangoe is a registered trademark of Tangoe, Inc.
About Symphony Teleca’s TEM Business
Founded in 2002, Symphony Teleca’s TEM Business provides global outsourced Telecom Expense and Mobility Management services and solutions. The company’s core market is large to medium organizations with operations in North America, South America, Europe, the Middle East and Asia Pacific.
1 Gartner Magic Quadrant for Telecom Expense Management published March 29, 2012 authored by Eric Goodness and Phillip Redman