Expense Management

Expense Management

August 23, 2012

Tangoe Makes Another Major Acquisition

Communications Lifecycle Management (CLM) software and services provider, Tangoe (News - Alert), Inc., closed a deal to acquire Symphony Teleca’s Telecommunications Expense Mangement (TEM) business earlier this month on August 8, 2012. The deal, which involves a $41 million cash purchase, is one that has immense potential benefits for Tangoe.

This acquisition will allow Tangoe to both expand its global customer base and enhance its relationships with key channel partners. Symphony Teleca’s global presence that spans from Dallas, Texas to Nashville, Tennessee to Bangalore, India will cement Tangoe’s already-strong presence.

President and CEO of Tangoe Al Subbloie (News - Alert) is enthusiastic about the acquisition, “Symphony Teleca’s TEM Business provides attractive cross-sell opportunities over the long-term particularly with our mobile device management (MDM) and real time expense management (rTEM) solutions.”

This acquisition is part of what appears to be big plans at the Tangoe headquarters, marking their fourth major acquisition in 2012, having already acquired British telecom ttMobiles Ltd. For an undisclosed sum, Montreal-based Anomalous Networks for an undisclosed sum, and San Diego-based ProfitLine (News - Alert) for $23.5 million. 

These acquisitions seem to be paying off, with reports of “better-than-expected” second quarter earnings as well as stock jumps. In the second quarter of 2011, Tangoe had reported a loss of 48 cents per share; however this year, reported earnings of one cent per share, leading financial experts to believe that their 2012 acquisitions may be paying off and turning loss into profit.

This recent acquisition provides Tangoe with the ability to deliver expense management solutions across industries that range from technology to healthcare to manufacturing to government. Of the $41 million, an estimated $30 million was paid at the close of the deal and another $4.5 million is slated for payment in the next six months, with the remainder scheduled to be paid by June 30, 2012. Subbloie thinks it is worth every penny, anticipating that it will “extend Tangoe’s worldwide presence and regional expertise” and that the acquisition “complements our innovation focus.”

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Allison Boccamazzo

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