Subex acquires Azure Solutions

In the single largest overseas acquisition by an Indian software firm, telecom software product company Subex Systems on Monday acquired British fraud management firm Azure Solutions in a $140 million stock-cum-cash deal.

The deal was primarily a stock transaction and the cash involved was only two to three per cent, Subash Menon, founder chairman, president and CEO, Subex said.

Post merger, the new entity 'Subex Azure' would count among its customers 23 of the world's largest 40 telecom firms, including British Telecom as a marquee customer, and a customer base of over 150 installations across 60 countries.

Significantly, London-headquartered Azure, the world's largest revenue assurance firm, is larger than Subex in size. "The acquisition will be consummated in about a month's time," Menon said.

The combined entity would have a 500-strong employee base, including 200 of Azure, across the globe, Menon said. In the next two or three years, the customer base would increase to 200.

Nasscom president Kiran Karnik said this was the single largest overseas acquisition by an Indian IT firm and called it was a "milestone" in the Indian IT space. "It has happened in a (product) space where we are wanting to grow".

Azure Solutions CEO John Cronin said Subex Azure would be the largest Revenue Maximisation company. "This is about creating a new company to lead the telecom revenue maximisation space."

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