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Evolving Systems Buys U.K. Company Douglas County Firm Pays $40.7m for Software Maker

Posted on: Monday, 8 November 2004, 09:00 CST

Evolving Systems Inc., a local telecommunications software company, expanded its reach overseas by snapping up a British telecom software maker for $40.7 million. London-based Tertio Telecoms Ltd. supplies software mainly to wireless communications companies in Europe, Asia and Africa. Douglas County-based Evolving Systems serves mostly wireline carriers in this country, including Qwest, SBC Communications and BellSouth. It is the third and largest purchase for Evolving Systems in 12 months. "The Tertio acquisition is a transforming event for Evolving Systems as we become a company with global reach and a customer base that includes many of the world's leading communications carriers," Stephen Gartside, Evolving Systems' chief executive, said in a statement

. Evolving Systems employs about 140, including more than 85 in Douglas County. The acquisition will bring the company's work force to more than 230 employees. The company is bankrolling the deal by using $11 million in cash, $16 million in seller-financed notes and $13.7 million in convertible preferred stock. Tertio's software allows companies to activate new communications services for customers. The privately held company's own customers include: U.K.- based cell phone- service provider Vodafone Group; U.K.-based Telewest Broadband; and Deutsche Telekom's T-Mobile International wireless communications subsidiary. Tertio recorded "profitable" results on revenue of $19.7 million in 2003. Evolving Systems' software allows telecom customers to bring their phone number with them when they switch their wireline or wireless carrier. Separately, the company said its third- quarter profit fell to $517,000, or 3 cents a share, from $2.1 million, or 12 cents a share, a year earlier. Revenue declined to $5.7 million from $7.1 million a year earlier. INFOBOX Evolving Systems Inc. EVOL: Nasdaq SC $4.64 Down 7 cents

Source: Rocky Mountain News

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