Marconi Buys MSI Software for $618 Million
Networks are becoming increasingly complex as carriers are making mobile Internet access and other new data services available to mobile phone users. MSI's products and services are designed to allow operators to use their networks more effectively to interact with their customers and to capitalize on the rapid growth in mobile telephony, increase revenues, and maximize customer retention. The company's addressable market for wireless operators is expected to grow from $160 million in 1998 to approximately $4.5 billion in 2002.
- Its Planet and Maxxer software and RF consultancy practice is a combination in wireless network planning, build-out, and performance management.
- Its Ceos mediation software enables wireless equipment from different vendors, both legacy and next generation, to capture real-time usage information for network operators.
- Its Cerve provisioning management and Ceer customer management software enable service providers to use their networks more effectively to interact with customers to reduce churn and increase revenues.
Marconi will pay US$618 million (£391 million) for the MSI shares, comprised of US$310 million (£196 million) in cash and US$308 million (£195 million) in new Marconi shares. In addition, US$104 million (£66 million) of in-the-money options and warrants may be rolled over into new Marconi options. The value of the employee option package may increase by a further US$179 million (£113 million) subject to continuing employment of MSI employee option holders including senior management.
Edited by Ellen Jensen