December 31, 2013
Mergers & Acquisitions
Redknee, a leading provider of business-critical billing and charging software and solutions for communications service providers, appointed MDC as its independent Indonesian counsel on matters relating to its acquisition of Nokia Siemens Networks’ Business Support Systems (BSS) business in Indonesia. The acquisition involved the transfer to Redknee of Nokia Siemens Networks’ BSS customer and supplier contracts, intellectual property rights, fixed assets and associated liabilities, along with BSS employees.
Nokia Siemens Networks believing Redknee would be best suited to take ownership of the business based on the strength of Redknee’s management team, continuity of the current BSS portfolio, and access to innovation for Nokia Siemens Networks’ BSS customers, choose Redknee, a Canadian company, over Ericsson as its buyer. Nokia Siemens Networks worked with Redknee to ensure an orderly migration and transfer of the BSS business. The total consideration paid by Redknee for the BSS business included £ 15 million in cash at closing plus a maximum of £25 million for certain performance-based cash earn-outs expected to be paid over 12 to 36 months post-closing.
Nokia who had approximately 1200 employees in its BSS division, including employees in Indonesia, under the purchase agreement, transferred its assets and employees to Redknee, underpinning current service levels and quality for customers. However, since Redknee did not have a company in Indonesia, a new foreign investment company had to be established to receive the transfer of the Indonesian assets and employees. The planned acquisition brought Redknee a complementary global footprint that spans more than 90 countries across Europe, Asia Pacific, the Middle East and Africa.