Subex snaps up UK company for $140 million in largest-ever software acquisition

25 April 2006

Subex Systems, a leading software products company, has acquired UK-based Azure Solutions for over $140 million. Subex would issue GDR's to the shareholders of privately held Azure. The combined entity would be known as Subex Azure Limited.

Subex said this is the largest overseas acquisition by an Indian software company till date.

Azure Solutions is the largest vendor of revenue assurance software and solutions to telecom companies globally. The company has 23 of the 40 largest telecom companies in the world as its clients, including Vodafone and BT.

More than 50 per cent of Azure's revenues come from BT which is also an indirect shareholder in the company. After the completion of the acquisition by Subex, BT would become an indirect shareholder of Subex. Current shareholders of Subex include chipmaker Intel.

Subex is the largest global vendor of fraud management software and systems to telecom companies. The company said the acquisition would help the combined entity to offer integrated solutions to telecom companies. Subex Azure would be the market leader in its areas of operation.

The financials of Azure have not been disclosed by Subex but the company said the acquisition would help grow revenues from product sales to around Rs450 crore by the year 07-08. The company has projected a consolidated net profit of over Rs150 crore for that year.