MTS- Mer Telemanagement Solutions Ltd. (Nasdaq: MTSL) has signed an agreement to acquire the telecom expense management business of AnchorPoint, Inc. of Massachusetts in an all-share deal. The deal is due to be closed by year-end, and upon completion of the transaction, MTS will integrate its telecommunication management and billing solutions with AnchorPoint's telecommunications expense management (TEM) solutions.
Based in Ra'anana, MTS provides business support systems (BSS) for comprehensive telecommunication management and customer care and billing (CC&B) solutions.
Under the terms of the agreement, MTS will acquire all the assets of AnchorPoint and assume certain liabilities. The total payment will be 25% of MTS's outstanding shares on a post-transaction basis.
MTS CEO Eytan Bar said, "This transaction is in line with our business objectives and it is an important step in carrying out our strategy to improve our market position and product offerings, accelerate growth and profitability and ultimately enhance shareholder value. The merger complements our TEM offerings to allow our customers to reduce their telecom costs and improve their IT/Telecom processes."
MTS's share was unchanged yesterday at $1.00, giving a market cap of $6.74 million. MTS, whose biggest shareholder is Chaim Mer with about 31% of the company, holds about $1.4 million in cash, so that it is more logical that the acquisition will be made in shares rather than cash, so as not to deplete their balance.
Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2008
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