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February 24, 2006
Mobile network optimizers - roll ‘em up, roll ‘em up
Consolidation in the European mobile networking sector seems to be underway, at least among businesses whose products enable cellphone companies to save money by optimizing equipment, software, and service offerings. This is a different part of the supply chain than the M&A taking place in the mobile content and application end of the market. We think the entry of private equity investors, as opposed to venture capital investors, are driving the rollups.
Companies that develop software like this ...
As well as those that can make diagrams like this and then translate it into cost-saving for cellcos are being acquired.
Five, mainly small-sized, deals in the segment have been announced so far this year, include Tietonator’s acquisition of Sofnetix, a Finnish UK-based wireless and mobilephone software developer (this is the 12th small acquisition by one of Europe’s largest IT companies in the past 14 months or so).
Also announced yesterday, Actix Ltd , a mobile network engineering firm, acquired Radioplan GmbH, a Dresden, Germany-based provider of automated network optimization software. It is spending some the new capital it raised recently. According to PE Week, Summit Partners led a £40M round of investment in Actix last year.
Last week, Mach, which is backed by private equity investors, acquired End2End Networks. Esmertec, a Java for mobilephones company acquired Cellicium, which makes self-service apps for mobilephone customers. It saves cellcos money in administering client services.
And in January, Spirent Communications acquired SwissQual for its network voice and data testing technologies for $70M.
With other companies in this niche of the market, such as Anam, Apertio and Aircom having recently raised large rounds, it is likely we see a few more such transactions this year. Both Aircom and Anam have private equity backers and PE strategies tend to include rollups as way to add value to the venture.
Read - Actix acquires Radioplan (3G UK)
Read - Airwide pulls private equity (alarm:clock euro)
Read -Esmertec acquisitions (alarm:clock euro)
Posted on February 24, 2006 06:19 AM | Posted to Wireless | Permalink
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