eServGlobal shareholders approve $113m asset sale
- 30 June, 2010 15:53
Shareholders in eServGlobal have voted to approve the sale of the company's unified service platform (USP) business to Oracle for up to $113.4 million.
Oracle will pay cash for the USP pre-paid billing software assets, which contributed to 42% of eServGlobal's revenue in 2009.
Around $25 million of the sale proceeds will be kept as a source of indemnification for Oracle for two years following completion - with 50% to be released after one year assuming no claims.
The company decided to sell the assets due to the industry trend towards converged pre-paid and post-paid billing software – with eServGlobal lacking a post-paid offering, it was forced to rely on partnerships to stay competitive.
In a presentation to investors, eServGlobal chairman David Smart said that after leaving the billing software market, the company intended to instead focus on VAS and mobile money services.