Subex Ltd, a leading global provider of business support systems for communications service providers, today announced the signing of an Asset Purchase Agreement with NetCracker for sale of its activation business.
"The market is changing and so are the operator's needs to remain competitive. Market evolution is toward solutions that allow CSPs to combine data with insights to trigger customer-centric decisions and hence this decision," Subex Founder, Chairman, MD and CEO Subash Menon said in a statement.
The decision to sell the activation business is an outcome of a change in Subex's strategy to focus on its core products, either ROC Solutions (revenue assurance, fraud management, partner settlement, data integrity management, etc) and managed services, the company said.
"This decision and the renewed focus will enable us in growing our revenues over 20% annually, with positive growth in EBITDA and will make us a significant force in the industry," Menon said.
NetCracker is a leading telecom OSS player and part of the $40 billion NEC group.
The activation business that is being sold off consists of Subex's service fulfillment solutions (NetProvisioning, NetOptimiser and Vector).
The company is bullish on its core business as seen in its Q1, FY12, results where the order intake for its ROC Portfolio grew by 63.12% to $23 million, up from $14.1 million in Q1, FY11, Subex said.
Net Profit grew 424.46% at Rs 13.23 crore, up from Rs 2.5 crore in Q1, FY11. The company's current qualified pipeline for the continuing business is worth $350 million, Subex said.
