Syniverse Buys ITHL
Syniverse Technologies is making a global play. The company announced a deal to acquire Asia-Pacific-based telecom solutions provider Interactive Technology Holdings Limited (ITHL). The deal is valued at $45 million.
Syniverse was attracted to ITHL because it not only expands its footprint in the Asia Pacific region, but also adds a complementary customer base, new products, advanced development capabilities and in-region customer support, Syniverse said. "ITHL expands our presence and provides us with additional development capabilities in the heart of the world's most advanced wireless market," Syniverse President and CEO Tony Holcombe said in a prepaid statement.
ITHL has nine regional offices, including offices in Singapore, Malaysia and Taiwan.
The $45 million deal includes up to $7 million in earn-out payments, which will be made in cash, Syniverse said. The company expects the purchase to increase its 2006 profit figures.
At the end of April, Syniverse posted first-quarter revenue of $75.4 million, down 5 percent year-over-year. Net revenue also decreased year-over-year to $73.4 million, which represents a 4.2-percent decrease. Net income, however, showed promise at $3.6 million. In the same period a year ago, the company reported a net loss of $21.1 million. Number Portability revenue was $6.7 million, a 42.3-percent decrease compared to a year ago. The company attributes the decline primarily to the previously disclosed migration of the Sprint port center.