CoManage Has Been Aquired By Syndesis
Syndesis Ltd. today announced it has agreed to acquire CoManage Corp., an announcement that confirms what Light Reading reported back in May (see Syndesis to Buy CoManage and Syndesis Makes Its M&A Move).
No financial details were provided, but the move was widely anticipated given that Syndesis was looking to expand and that the OSS space is crowded with competitors (see OSS Business Is Buoyant).
CoManage is a privately-held company that has raised $57 million from backers such as Goldman Sachs & Co., Highland Capital Partners, Bessemer Venture Partners, and Lucent Venture Partners Inc., among others.
Syndesis is also privately held and is backed by leading venture capital firms including Greylock Partners, Helix AG, Pequot Capital Management Inc., Sequoia Capital, and others. The company is one of the few OSS companies with annual revenues of more than $100 million.
For some time, Syndesis has been saying it will expand out of its traditional provisioning system domain into other areas of OSS (see Syndesis Lands Monster OSS Deal).
CoManage fits that bill. The firm has a data-integrity system called TrueSource that helps carriers collect and manage accurate data that is then used by OSS systems to locate network faults and provision services.
The company’s software is already used by carriers such as AT&T Wireless (now part of Cingular Wireless LLC), BT Group plc (NYSE: BT; London: BTA), Sprint Corp. (NYSE: FON), and Verizon Communications Inc. (NYSE: VZ).
The two companies’ products fit together nicely. CoManage’s software helps carriers manage inventory, verify services, and perform other vital functions, while Syndesis’s systems gather network data to determine, in real time, which services have been provided to which customers. Those kind of tools are dependent on accurate network data.
“Bottom line, this combined solution is going to save tons of money in capital and expense dollars while also accelerating revenue streams and profitability from complex services,” Chris Swan, Syndesis’s senior VP of sales, marketing, and alliances, said in a prepared statement provided this morning.
Syndesis and CoManage are fairly significant players in their existing market segments, according to Heavy Reading’s 2005 OSS Market Perception Study. Syndesis ranks fifth in the service activation product category and CoManage ranks eighth in the resource and inventory management systems category.