Redknee bulk-up fast with their plan to acquire Business Support Systems from Nokia Siemens Networks

• “Size is critical in the long term success of a company in this market, growing through acquisition opposed to organic growth delivers an acceleration to the process.

• The acquisition will give Redknee the elusive Tier 1 credibility and customers they have been searching for, and gives them a significant boost to their global reach.

• The deal seems good value  (15 million euros in cash at closing, plus a maximum of 25 million euros for certain performance-based cash earn-outs expected to be paid over 12 to 36 months post-closing) to get 1,200 staff and a business that is viable.

• NSN need to sell this asset to ensure that on-going speculation over NSN in the market don’t result in the loss of customers, staff and value of the business, like a melting ice cream on a sunny day.”

Justin van der Lande, Revenue Management research programme, Analysys Mason