Enghouse Systems continues run of international acquisitions, buys CDRator A/S

Enghouse Systems’ (Enghouse Systems Stock Quote, Chart, News: TSX:ESL) remarkable run has been powered by acquisitions, often international in scope and executed at what prove to be bargain basement prices. Today, the company appears to have pulled another page from that playbook.

Enghouse Systems this morning announced it has acquired Danish mobile billing provider CDRator A/S for just over one times sales. The Markham-based company will pay $23-million for a concern that posted more than $20-million in revenue in fiscal 2014.

CDRator provides automated billing solutions and customer care to mobile virtual network operators (MVNOs). MVNOs are wireless communications service providers that don’t own network infrastructure. The entities grew out of the need to employ excess capacity and from government intervention designed to create competition. The first MVNO was created in Denmark, and they spread to places like the U.K., where Virgin Mobile UK launched in 1999.

“MVNOs represent a global growth market segment for Enghouse,” said Enghouse CEO Steve Sadler. “CDRator complements our portfolio of solutions, brings new customers and expertise within the Enghouse Networks Group and expands on our recent acquisitions that address the mobile operator space. We are pleased to welcome CDRator’s customers and employees to our organization.”

CDRator currently has 130 staff who support customers in the North America, Europe and Africa.

Recent acquisitions by Enghouse Systems include Belgium-based Voxtron NV and Dublin-based Jinny Software, which had revenue of $24.6-million and was purchased for $19.3-million.