Enea made an offer to acquire a business unit from Atos Convergence Creators with leading positions in policy management, authentication, and user management, and would license some technology from Atos, according enea.com. The total consideration amounts to approximately 18 MEUR and would be financed through cash and bank loans. The business unit is headquartered in Austria, with additional sales and development sites in Germany, Croatia, and the US. The new business is estimated to generate annual revenues of approximately 12 MEUR in 2019.
The acceptance of Enea’s offer by Atos is conditional on the finalization of the social process with the relevant employee representative bodies, and the transaction itself would be conditional on customary closing conditions, and the actual transfer of key customer and employee contracts as well as the finalization of the social process with the relevant employee representative bodies at a local level. The transaction is estimated to be completed in March 2019.
“I am proud to announce a new strategic acquisition that strengthens our portfolio of key applications for the mobile network. This complementary acquisition would, together with solutions that we previously acquired through Openwave Mobility and Qosmos, build an even stronger portfolio and offering for the mobile network of today and tomorrow”, said Anders Lidbeck, President and CEO, Enea.
Atos Convergence Creators has today a leading product portfolio in the area of authentication and policy management, serving many of the world’s leading telecom operators with functionality such as AAA (Authentication, Authorization, Accounting) and PCRF (Policy and Charging Rules Function). Moving forward, this portfolio is also well positioned to address the equivalent functionality in the service based architecture of tomorrow’s 5G networks.
In the next generation mobile network, managing subscriber information along with authentication and policy management becomes some of the most important building blocks for creation of new business models and customized service offerings. Through the previous acquisition of Openwave Mobility, Enea took a leading position in the converged data layer for the fifth generation of mobile networks, and the current acquisition would strengthen and complement this area with several key applications that are central parts in the mobile core network.
Enea would acquire both products and existing business with focus on PCRF (Policy and Charging Rules Function) and AAA (Authentication, Authorization, and Accounting) for the fourth generation of mobile networks, and moving forward address PCF (Policy Control Function), AUSF (Authentication Server Function), UDM (Unified Data Management), and UDR (User Data Repository) for the fifth generation of mobile networks. In addition, Enea would also license certain technology from Atos. It is envisaged that the acquired business and approximately 90 employees from Atos would join Enea as a new, independent business unit in connection with the acquisition.