Acquisition is expected to be slightly accretive to non-GAAP net income per share
Communications Lifecycle Management ("CLM") software and related services provider Tangoe has acquired telecom expense and mobility management services provider ProfitLine.
Under the acquisition, Tangoe will pay approximately $23.5m in cash, $14.5m of which was paid upon closing, $4.5m of which will be paid in 12 months and $4.5m of which will be paid in 18 months.
Tangoe expects ProfitLine to contribute approximately $0.4m in revenues during the fourth quarter of 2011, and it does not expect the acquisition to have a material impact on non-GAAP profitability.
For the year of 2012, Tangoe expects ProfitLine to contribute $14m to $15m in revenue, and the acquisition is expected to be slightly accretive to non-GAAP net income per share.
Tangoe president and CEO Al Subbloie said the addition of ProfitLine expands Tangoe customer base, broadens its vertical coverage, and provides an attractive cross-sell opportunity as we leverage Tangoe’s broader global footprint.
"Tangoe has a proven history of complementing our organic growth by successfully identifying and integrating acquisitions, which we believe is among the core competencies that made us an industry leader," said Al Subbloie.