eServGlobal investors to vote on USP sale June 30
- 03 June, 2010 15:28
Shareholders in OSS/BSS vendor eServGlobal (ASX:ESV) will on June 30 vote to approve the sale of the company’s USP business to Oracle Australia.
The company has proposed to sell USP for US$93.7 million ($113.4 million), minus certain deductions.
USP markets an eponymous a pre-paid billing platform developed by eServGlobal. The core business earned revenue of $61.6 million in FY09, 42% of eServGlobal’s total, and its subunits also made a contribution.
But with the BSS industry shifting towards converged billing solutions, the value of the business to eServGlobal has decreased as USP has to frequently rely on commercial partnerships to remain competitive, the directors said.