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Subex buys US-based Mantas for $2 m

Our Bureau

To fund buy-out thru $10-m GDR offering


The new customers acquired by Subex through this acquisition include Verizon Long Distance, Verizon Local Exchange Carrier, BellSouth and Telus Wireline

Bangalore , March 7

Telecom software maker Subex Systems Ltd said on Tuesday that it has acquired the fraud management business assets of the Virginia-based Mantas Inc for $2 million.

"This acquisition will consolidate our position in the fraud management space by brining in customers such as Verizon and BellSouth among others," said Mr Subash Menon, President and CEO, Subex Systems Ltd.

"We have acquired the intellectual property (IP) relating to Mantas' fraud management product and the customer relationship maintenance contracts worth $2 million. Going forward, we will not be selling the Mantas' product," Mr Menon said.

Mantas Inc, a privately held firm, had revenues of $2 million from the fraud management product.

Subex expects a net accretion of $1 million for financial year 2006-07 and the payback would be over 18 months, Mr Menon said.

The new customers acquired by Subex through this acquisition include Verizon Long Distance, Verizon Local Exchange Carrier, BellSouth and Telus Wireline among others.

Subex expects to fund the Mantas buy-out from the $10 million GDR offering that's currently on, Mr Menon said. The company also has a Rs 37 crore cash-and-cash equivalents on its balance sheet.

Further, Mr Menon said that Subex continued to look around for acquisitions and was in talks with a few companies both in the US and Western Europe.

Subex shares ended lower by two per cent on Tuesday at Rs 406.5 on the BSE. The acquisition of Mantas was the fourth strategic buy-out by Subex till date. The company has a customer base of some 85 clients across 40 countries.

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