Comptel Corp. Acquires Axiom Systems

Comptel Corp., the provider of operations support systems and not the industry association, said Monday it has acquired Axiom Systems, a United Kingdom-based software product company focusing on the broadband fulfillment market, for approximately EUR 8.9 million ($14.2 million).

Helsinki, Finland-based Comptel has approximately 260 customers in 85 countries and specializes in inventory, provisioning and activation, mediation and charging solutions. It will add 87 employees to its current 550 employee base with the acquisition of Axiom.

It also will be adding solutions to its portfolio around IP-based services such as VoIP and IPTV. Axiom is has a good market position in Europe for fulfilment as well as key customers in Asia-Pacific. The net sales in 2008 are estimated to grow about 15 percent.Consolidation of Axiom is estimated to increase Comptel net sales around 10 percent in 2008. Axiom’s EBITDA impact to Comptel in 2008 is expected to be neutral before one-off items, which are estimated to be EUR 1 million.

Sami Erviö, president and CEO of Comptel, said Axiom has excellent IP network competencies and has proven capabilities for next generation service fulfillment.

“Together we are well positioned globally and especially strong in Europe, Asia-Pacific and Middle East. We now have the right competencies, the leading customers and the presence to gain market share in the emerging all-IP network based fixed-mobile convergent telecom industry,” he said.

Comptel will pay more if Axiom Group’s audited net sales in 2008 are more than EUR 13.5 million. The acquisition is financed through Comptel’s liquid assets and by raising approximately EUR 5 million of debt. If Axiom reaches its financial goals and addition cash is required, Comptel will issue up to 4.9 million new shares of stock.

Gareth Senior, CEO and CTO of Axiom Systems will continue in his role as the CEO of Axiom. He has been also nominated as a member of Comptel Group’s Executive Board.

In its earnings report on Wednesday Comptel will update its outlook for 2008.