(photo credit: Channel 10)
Platinum Equity LLC is currently the leading candidate to acquire Comverse
Technology Inc. Platinum Equity has submitted an offer of $9- $10 per share,
reflecting a company value of $1.85 billion-$2.05b., a premium of more than 30
percent on the company’s market cap. Comverse’s share price closed at $7.14 on
Wall Street on Friday, for a market cap of $1.46b.
Goldman Sachs Group
Inc., which is handling the sale of Comverse, has been busy of late, and the
list of potential buyers of the company is growing.
If a deal is closed,
it will probably be in two parts: first the acquisition of Comverse Technology,
immediately followed by the sale of Comverse Inc., probably to Oracle
Corporation, Comverse’s main competitor in the billing-solutions
Almost every major computer- and telecommunications-solutions
developer has had the acquisition of Comverse units on its agenda for
Potential buyers include Oracle, Hewlett Packard Co., IBM
Corporation and Huawei Technologies Co. Ltd.
Israel’s Amdocs Ltd.
has shown interest in Comverse Inc.
Comverse Technology has sought to be
acquired as a whole, including all its subsidiaries: Comverse Inc., Verint,
Ulticom Inc. and Starhome Inc.
Platinum Equity, founded by chairman Tom
Gores in 1995, specializes in taking public companies private or selling off
non-core businesses of companies. Therefore, acquiring the holding company
Comverse Technology is more relevant than for other private-equity
Platinum Equity’s access to Comverse Technology has been
simplified after acquiring Ulticom, a US provider of solutions for landline and
cellular networks, in September for $90m. Comverse Technology’s general
shareholders meeting is due to approve the sale on Thursday. Platinum Equity
will try to merge Ulticom with Covad Inc., which it acquired five years ago and
now operates as a unit of Megapath Inc.
Comverse Technology’s CEO is