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Mind CTI (Nasdaq: MNDO) today announced that it has acquired from Veramark Technologies (NASDAQ:VERA) all of the rights for the VeraBill product line, for small to mid-size wireline and wireless carriers. The price, paid at closing to Veramark, was $1 million in cash.
VeraBill is a mediation, provisioning and billing solution for wireline and wireless mid-size carriers. This acquisition will provide MIND with complementary technology for mediation and provisioning for traditional wireline and wireless switches, an existing customer base, extended geographical presence, and established channels of distribution. The transaction will allow MIND to capitalize on the growing 2.5G and 3G wireless services.
David G. Mazzella, Veramark President and CEO, commented, "This sale achieves our previously stated objective. We now can focus all of Veramark's efforts and resources on the telemanagement needs of small businesses and large enterprises for everything from voice and data call accounting to comprehensive cable, asset and work order management. We feel the opportunities in telemanagement are great and that a more focused Veramark will lead the industry in fulfilling customer requirements. Telemanagement products represented over 90% of Veramark's 2000 revenues."
Mazzella added, "We believe that MIND CTI, with its proven success in IP services billing and customer care solutions, will strengthen and enhance the VeraBill product. We expect MIND will drive this solution to the rapidly growing 2.5G and 3G wireless providers while maintaining excellence in customer service. We wish them continued success."
Monica Eisinger, President and CEO of MIND said: "MIND's strategy is to diversify its target markets and expand product offerings. This acquisition will serve as an important step in achieving this strategy. In addition, MIND's existing IP services billing and customer care solutions will benefit by leveraging on the immediate access to established system integrators' distribution channels." Eisinger added, "MIND is now able to offer a complete billing solution for wireless, data, voice and other IP based services."
MIND says the benefits of the acquisition are both technological and commercial. Combining the newly acquired mediation capabilities with MIND's existing powerful rating and billing solution, will accelerate the release of a new generation of products. This also enables MIND to offer service providers a total billing solution for multiple services, encompassing both traditional voice and value added IP services. Immediate revenue is expected to come from the existing customer base for professional services and license upgrades. Furthermore, MIND believes the new relationships with additional system integrators will benefit all of MIND's lines of business.
Published by Israel's Business Arena on March 27, 2001.