Subex to sell Activation Business unit to NetCracker

Subex plans to sell off its Activation Business division to NetCracker, the OSS provider in order to focus on its core business growth areas — Revenue Operations Center, Business Optimization and Managed Services. This move is expected to enhance Subex's revenue over 20% annually with positive growth in EBITDA. The Activation business that is being sold off consists of Service Fulfilment solution (NetProvisioning, NetOptimizer and Vector).

The company is bullish on its core business line as seen in FY12 Q1 results where the Order Intake for ROC Portfolio grew 63.12% at US $ 23m up from US $ 14.1m in FY11 Q1. Net Profit for the company grew 424.46% at Rs. 132.27 m up from Rs. 25.22 m in FY11 Q1. The company's current qualified pipeline for the continuing business is worth US$ 350 million. Subex estimates its addressable market size in 2011 to be US$ 1.56 Billion.

Subex acquired Syndesis Limited, the Canada-based OSS company in 2007 with an investment of US$ 165.4 million. The expanded company re-organized into three distinct Business Units (BUs) — Revenue Maximization Solutions BU, Fulfillment & Assurance Solutions BU and BT Business BU. To enhance its core competency in BSS segment, the company plans to sell Activation Business unit and Fulfillment & Assurance Solutions (which are OSS divisions) while Revenue Maximization Solutions would remain as a part of Subex.

Subash Menon, founder chairman, managing director and CEO said, “The market is changing and so are the operator's needs, to remain competitive. Market evolution is towards solutions that allow CSPs to combine data with insights to trigger customer centric near real time decisions. This enables operators to deliver superior customer experience profitably.”