Daleen Technologies, Inc, a global provider of licensed and outsourced billing and customer management, operational support systems (OSS) and revenue assurance solutions for traditional and next-generation service providers, today announced that agreements have been signed by affiliates of Quadrangle Capital Partners and Behrman Capital for investments of $25 million and $5 million, respectively, into Daleen Holdings, Inc, a newly formed holding company.
The company further announced that Daleen Holdings will simultaneously acquire Daleen Technologies and Protek Telecommunications Solutions Limited, a UK-based international software solutions group focused in the operational and business support systems markets, for an aggregate of $37.2 million in stock and cash, including anticipated performance payments.
The combination of Daleen Technologies and Protek will create a diversified service provider with billing, network management, network inventory, revenue assurance and event management products that can serve wireline and wireless telecommunications providers around the world.
Daleen Holdings will have an installed base of over 90 customers on six continents with the ability to serve new and existing customers through licensing agreements or a service bureau.
"Geographic and product breadth have become critical requirements for success in the new telecom marketplace," said Gordon Quick, president and CEO of Daleen. "The combination of Daleen and Protek produces a stronger, more capable OSS company with a more comprehensive solutions portfolio, a strong balance sheet and a clear vision going forward for our customers."
"Daleen`s reputation as a technology leader in the wireline billing and event management space is well recognised," said Paul Beaumont, CEO of Protek. "With the addition of Protek`s network management and inventory management solutions, our experience in wireless billing and our global operations capabilities, we will be well positioned to address the OSS needs of wireless and wireline telecom providers worldwide, from emerging tier three players to established tier one leaders."
Daleen Holdings will be headquartered in Boca Raton, Florida, with principal offices in St Louis, London, Johannesburg, Dakar, Jordan, Norway and Moscow. Gordon Quick will serve as CEO of Daleen Holdings and Paul Beaumont will be President of International. Daleen and Protek have executed a reciprocal services agreement and an international teaming agreement that will allow the two companies to begin working closely in developing and marketing their respective products and services to current and new customers and to collaborate in the development of new solutions.
"We are pleased to be partnering with the management of Daleen and Protek to create a combined company with the resources and scale to compete for any customer across the telecommunications landscape," said Michael Huber, Managing Principal of Quadrangle Capital Partners. "We look forward to helping the combined company continue to grow to meet the changing needs of their customers."
Completion is currently expected to occur during the third quarter of 2004.
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Daleen Technologies, Inc is a global provider of high performance billing, customer care, OSS and revenue assurance software, with a comprehensive outsourcing solution for traditional and next-generation service providers. Daleen`s solutions utilise advanced technologies to enable providers to reach peak operational efficiency while driving maximum revenue from products and services. Core products include its RevChain billing and customer management software, Asuriti event management and revenue assurance software, and BillingCentral ASP outsourcing services. More information is available at www.daleen.com.
Protek
Protek develops, markets and supports business and operational support software (B&OSS) solutions for next-generation service providers and large enterprises ensuring a predictable and rapid return on investment.
Its broad range of functionality in customer care and billing, rating, order management, flow-through service provisioning, (real-time) inventory, network management, and mediation gives Protek`s service provider and large enterprise customers increased control over their business, resulting in improved business efficiency and increased revenue from new services, while also reducing costs through automation. Proven benefits include faster time to market, reduced business risk, improved customer service, and enhanced return on investment.
More than 70 customers in over 35 countries utilise Protek to improve their competitiveness and profitability, including BellSouth, MTN, ntl:, Orange Liechtenstein, Og Vodafone, SabaFon, Saudi Telecommunications Company - (STC), Telenor and Western Wireless International. Protek`s partners include HP, IBS, Open Technologies, StreamServe, Crystal Decisions, IBM and Sun Microsystems. Protek employs around 250 people globally, with headquarters in the UK and offices in Europe, Russia, Africa and the Middle East.
For more information, please visit our Web site at www.protek.com or e-mail us at info@protek.com.
Quadrangle
Quadrangle Group LLC manages Quadrangle Capital Partners LP, a private equity fund that specializes in the media and communications industries. The firm also invests in financially troubled companies across industry groups through a distressed debt investment program. Quadrangle Group was founded in March 2000 by four former managing directors of Lazard Fr`eres & Co LLC who have more than 60 years of combined experience in private equity and in media and communications. For more information, visit www.quadranglegroup.com.
Behrman Capital
Based in New York City and San Francisco, Behrman Capital was founded in 1992 by Darryl G and Grant G Behrman. The firm invests in management buyouts, leveraged buildups and recapitalisations of established growth companies and provides expansion capital to emerging growth companies. The company`s investments are focused primarily in four industries: information technology, business services, contract manufacturing and outsourcing. The firm currently has a combined capital base exceeding $1.8 billion.
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