Integrated revenue management (IRM) solutions provider ECtel (Nasdaq: ECTX) announced today the signing of a definitive agreement to acquire Elron Telesoft, a revenue assurance solution provider.
ECtel will purchase all of the outstanding share capital of Elron Telesoft Ltd. and Elron Telesoft Export Ltd. from their parent company, Elron Electronic Industries (Nasdaq: ELRN; TASE: ELRN) in consideration for $2.1 million in cash.
The acquisition is expected to be closed at the end of the month.
Elron Electronic Industries will be entitled to receive an additional $400,000 if certain milestones are achieved by Telesoft during 2006. The acquisition is subject to customary approvals and closing conditions.
Telesoft's flagship RAP solution manages all revenue-related business processes for communications service providers (CSPs). RAP effectively complements ECtel's CashView cost and revenue assurance solution for interconnect, CDR and SS7 reconciliation. This combination will allow ECtel to provide CSPs with a flexible, end-to-end solution that addresses all of their revenue assurance needs.
ECtel stated that the acquisition strengthens its global sales presence and tier-one customer base in the US, Western Europe, and Asia Pacific. ECtel serves more than 75 customers, including prominent tier-one operators, in over 50 countries.
Elron Telesoft CEO Benny Yehezkel said, "By joining forces with ECtel, we believe we are well positioned to provide the industry's leading revenue assurance offering."
Published by Globes [online], Israel business news - www.globes.co.il - on Wednesday, December 21, 2005