Subex acquires product, pockets 14 clients

Subex Systems Ltd, the Bangalore-based software product company that caters to fraud management and revenue maximisation for telecom companies, has announced the acquisition of Fraud Centurion product from US-based Lightbridge, Inc., a value-added transaction processing company. The company has not disclosed the cost of acquisition.

Lightbridge, Inc. is a leading transaction processing company that businesses trust to manage customer transactions for greater profitability. Lightbridge adds value to fraud prevention, credit qualification, payment processing, billing, and enhanced voice and data processes.

This second acquisition comes barely after a few weeks since the company acquired the fraud management group (FCG) of France-based telecom infrastructure major, Alcatel, in all-cash deal is valued at $3 million.

The acquisition of Fraud Centurion is subject to customer-due-diligence and certain assets and liabilities relating to this product. This acquisition adds nearly 14 new clients to Subex's list of 55 clients, post acquisition of Alcatel.

"The acquisition will help Subex take giant strides in the US market. Coming close on the heels of our European expansion, we now have a clear leadership position in two of the biggest markets namely, Western Europe and the US," Subash Menon, president and CEO, Subex Systems said.

While the acquisition will be completed within a few months, revenues from the product will factor into the company's balance sheet only from the next fiscal.

"Knowing that Fraud Centurion clients are in good hands with Subex, we can focus our fraud initiatives on customer fraud screening, risk and value management solutions," Gregory Crowley, vice-president of corporate development at Lightbridge Inc., said.

Subex plans to transition the core support team from Lightbridge to its new facility located in Denver, US. Subex's new facility in Denver is expected to be operational by August - September 2004 and would act as a sales and support office for the Americas.

Besides taking over the support of Fraud Centurion's global clientele, Subex will also merge the Fraud Centurion's functionalities with its flagship product, Ranger.

US-based Communications Fraud Control Association's (CFCA) pegs annual worldwide telecom fraud losses to be in the range of US $ 35-40 billion. According to estimates, currently only 27 per cent of operators use any revenue maximisation solution.