Tampa-based cellular phone systems company Syniverse announced it has reached an agreement to acquire its rival, Luxembourg-based Mach, for a cash consideration of approximately $693 million (€550 million). The move aims to expand Syniverse’s global reach and scale. The deal is still subject to regulatory approval.
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In a statement, Jeff Gordon, president and CEO at Syniverse, said the acquisition will benefit both mobile users and the entire mobile ecosystem. Syniverse will have the added scale to provide mobile service providers (MSPs), such as mobile operators, Internet service providers, cable MSOs, emerging providers, enterprises and more, improved time-to-market and capabilities that deliver a high quality experience for end users.
The acquisition would add to Syniverse’s existing global customer base of more than 900 MSPs in more than 160 countries. Gordon said the proposed acquisition is set to grow the company’s top line revenue, while providing the scale and critical mass for further development and speed up market delivery of advanced solutions that will give providers throughout the mobile ecosystem the ability to deliver a better mobile experience for end users worldwide.
Mach CEO Morten Brøgger said that the combined firms would provide a complementary suite of solutions that would enable customers to deliver an enhanced end-user experience.
For the transaction, Deutsche Bank acted as the sole M&A adviser while Debevoise & Plimpton and Shearman & Sterling acted as legal advisers to Syniverse. Barclays, Deutsche Bank, Credit Suisse and Goldman Sachs will provide debt financing for the transaction.
