Nokia Siemens Networks announced a new divestment, selling its BSS business to Redknee for up to EUR 40 million. The Business Support Systems (BSS) business provides real-time charging, rating, policy, and customer care systems to more than 130 operators, including half of the top 100 global mobile operators, NSN said. The company confirmed in September it was in talks to sell the BSS unit, with Ericsson, Amdocs and private-equity firms reported as potential buyers.
Redknee will take over 1,200 employees associated with the business and see its global footprint expand by over 90 countries. The deal includes intellectual property rights, fixed assets and associated liabilities, along with the BSS employees based mainly in Berlin, Bangalore and Wroclaw. Nokia Siemens Networks will retain a small number of broader customer contracts that include elements of BSS for GSM-R and mobile broadband related mediation.
Redknee will finance the deal through a mix of existing cash and debt facilities still to be finalised. It will pay EUR 15 million cash at closing, plus a maximum EUR 25 million in performance-based cash earn-outs over 12 to 36 months post-closing. The acquisition is anticipated to close in the first half of 2013, pending regulatory approvals and consultations with unions.
