CSG Systems International Inc. will acquire all of Lucent Technologies' billing and customer-care assets for $300 million in cash.
The deal includes all of the software and services Lucent bought in 1999 from
Cambridge, Mass.-based Kenan Systems Corp. for $1.48 billion.
CSG executives said Monday that the reduced price reflected the buyer's ability to
"meet a number of requirements Lucent had in a timely fashion."
Lucent has 200 customers in 22 countries using the "Arbor/BP" billing and
CSG said sales momentum in the division has dropped dramatically because the
division is a software product trying to exist in a hardware-focused
CSG executives stressed that Lucent never slacked on its attention to
research and development in the sector, however.
Lucent's products are "a great fit" with CSG's core business, noted Neal
Hansen, chairman and CEO of CSG.
His company's strength is in large-scale service bureaus with domestic
Lucent provides software solutions that are used primarily by wireless and
wireline telephony and satellite providers.
Lucent's billing and customer-care division employs 1,300
throughout the world.
CSG executives would not speculate on the number of workers it will retain
beyond two top managers.
The parties expect the deal to close by the end of the first quarter.