August 9, 2012

CT's Tangoe pays $41M to widen U.S., India reach

CORRECTION: A previous version of this story misidentified Symphony Teleca's global headquarters.

Orange telecommunications software-services vendor Tangoe Inc. paid about $41 million cash for the telecomm expense management business of India's Symphony Teleca, its fourth acquisition so far this year.

With the deal, Tangoe said Thursday it is buying Symphony Teleca's product-development expertise as well as widening its presence in U.S. markets in Dallas and Nashville, and in Bangalore, India, where Symphony is based.

Tangoe said Symphony's technology dovetails with software that Tangoe customers use to optimize buying or retiring cell phones and other mobile communications devices.

Of the total price, only $30 million was paid at closing Wednesday; the rest is payable over the next 12 months, tied to certain milestones.

In February, Tangoe bought British telecom ttMobiles Ltd. to expand Tangoe's European operations. What Tangoe paid wasn't disclosed.

In January, Tangoe paid $23.5 million for ProfitLine Inc., a San Diego maker of telecom expense and management software, and an unspecified sum for Anomalous Networks, of Montreal, Canada.

Meantime, Tangoe kept its earnings in the black in the second quarter on strong sales of its communications management software and services.

For three months ended June 30, Tangoe netted $338,000, or a penny a share. That compares to a net loss of $2.3 million, or 48 cents a share, the same period last year.

Second-quarter revenues climbed 39 percent to $32.1 million vs. $23.5 million a year ago.

The company also turned a profit in the first quarter. Tangoe officials said they expect the company to stay in the black in the third quarter on its way to full-year net income in the range of 45 cents to 46 cents a share.

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