Shares of Mississagua’s Redknee Solutions (TSX:RKN) are in the green again today, but you couldn’t blame investors for not noticing; the company has nearly doubled since the stunning acquisition of assets Nokia Siemens Networks’ Business Support Systems business.
The pickup, made early in December, cost Redknee $54-million, made up of $29-million in cash, plus a $25-million earn out. M Partners analyst Ron Shuttleworth, who called the acquisition transformational, said Redknee had gained a major footprint into the tier-one carrier market, instantly adding 35 such customers. Redknee added a total of 130 customers in ninety countries, 90% of which were new to the company.
The move clearly caught the market off-guard, some felt Redknee was itself a prime acquisition target.
Founded in the solarium of Skoczkowski’s apartment in 1999, Mississauga-based Redknee now boasts clients such as Microsoft and Cisco. The company’s billing solutions run the gamut from the customer side to helping service providers better monitor, understand and monetize their subscriber base. Redknee’s real-time converged billing solution has been benchmarked to support a quarter of a billion subscribers.
Shares of Redknee, which closed December 4th at $1.39, were at press time up 1.9% to $2.65.