Redknee Plans to Acquire Business Support Systems from Nokia

Redknee Plans to Acquire Business Support Systems from Nokia Siemens
Networks 
Redknee to Host Investor Conference Call at 8:30 a.m. Eastern Time on
December 5, 2012 
TORONTO, ONTARIO -- (Marketwire) -- 12/05/12 -- Redknee (TSX:RKN), a
leading provider of business-critical billing and charging software
and solutions for communications service providers, has reached a
definitive agreement to acquire Nokia Siemens Networks' Business
Support Systems (BSS) business. Nokia Siemens Networks' BSS business
provides real-time charging, rating, policy, and customer care
solutions to more than 130 communication service providers, including
half of the top 100 global mobile operators. Nokia Siemens Networks
believes Redknee is 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. Approximately 1200 employees would transfer
to Redknee, underpinning current service levels and quality for
customers. The planned acquisition would bring to Redknee a
complementary global footprint that spans more than 90 countries
across Europe, Asia Pacific, the Middle East and Africa.  
Lucas Skoczkowski, Redknee's CEO, commented:  
"This planned acquisition marks a significant milestone in Redknee's
long-term growth strategy. It would add strong long-standing
relationships with new Tier 1 operators and expand Redknee's market
share and presence in high growth markets. Our expanded team would
drive the continued success of our customers, as we strive to be the
provider of choice for real-time converged billing, customer care,
policy, and payment solutions in the communications industry."  
"Our commitment to ongoing investment in the product roadmap will
ensure that our customers will benefit from the complementary
capabilities, larger scale, and impressive IP portfolio. In addition,
this planned acquisition would create a significant solution suite
that offers a compelling and proven alternative for global system
integrators and partners," Skoczkowski said.  
Following the acquisition, Redknee would remain committed to the core
values for which both it and Nokia Siemens Networks are widely
recognized, including strong customer focus and delivering market
leading, innovative products and services. This would include
continued research and development investment to deliver flexible
on-premise and cloud-based solutions that meet the scalability and
agility requirements of communication service providers globally.  
Rajeev Suri, CEO of Nokia Siemens Networks, said:  
"This planned transaction supports our transformation to focus on
mobile broadband. Both Redknee and Nokia Siemens Networks have a
reputation for high quality and customer commitment, which provides a
common foundation for Redknee to build the BSS business in the
future. We will work with Redknee to ensure a smooth transfer of the
business and to provide some mobile broadband specific elements of
the BSS portfolio to our customers."  
Rick Centeno, head of the BSS business at Nokia Siemens Networks,
added:  
"The planned acquisition would provide our customers the benefits of
being managed by a team consisting of our trusted BSS specialists and
Redknee, a company widely recognized for its focus on leadership in
the BSS space and for ensuring the success of its customers. Through
the continuing support of the Beyond Billing solution and new
capabilities from Redknee, our customers would have access to a
portfolio and industry expertise that would equip them to succeed in
today's dynamic operating environment."  
The acquisition would involve 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. The employees expected to transfer to Redknee are
mainly based in Berlin, Germany; Bangalore, India; and Wroclaw,
Poland. Until the agreement closes, Nokia Siemens Networks will work
to ensure an orderly migration and transfer of the BSS business.
Nokia Siemens Networks would retain a small number of broader
customer contracts that include elements of BSS for GSM-R and mobile
broadband related mediation.  
Redknee expects to finance the transaction through a combination of
cash on its balance sheet and debt facilities. Such debt facilities
are subject to conditions and will be entered into on and subject to
closing of the acquisition. The total consideration paid by Redknee
for the BSS business will include 15 million euros in cash at
closing, plus a maximum of 25 million euros for certain
performance-based cash earn-outs expected to be paid over 12 to 36
months post-closing.  
The acquisition is anticipated to close in the first half of calendar
year 2013. The acquisition is subject to applicable regulatory,
exchange and third party approvals, a consultation process with trade
union representatives, and other customary terms and conditions. The
acquisition would be a significant acquisition for Redknee under
applicable securities laws and, accordingly, Redknee will file a
Business Acquisition Report 75 days following the closing of the
acquisition. Canaccord Genuity acted as the exclusive financial
advisor to Redknee.  
A material change report, which provides more details on the
acquisition and the agreement will be filed with the Canadian
securities regulators shortly and will be available at www.sedar.com
and at Redknee's website at www.redknee.com. 
Investor Conference Call  
Redknee will host a conference call today; December 5, 2012 at 8:30
a.m. Eastern time to discuss the acquisition as well as the company's
results for the fiscal fourth quarter and full year ended September
30, 2012. Redknee Solutions' CEO Lucas Skoczkowski and CFO David
Charron will host the conference call followed by a question and
answer period. 


 
Date: Wednesday, December 5, 2012                                           
Time: 8:30 a.m. Eastern time                                                
Dial-In Number: 1-877-941-2068                                              
International: 1-480-629-9712                                               
Conference ID#: 4573892                                                     

 
The presentation will be webcast live and available to replay via the
Investors section of the company's website at www.redknee.com.  
Please call the conference telephone number 5-10 minutes prior to the
start time. An operator will register your name and organization. If
you have any difficulty connecting with the conference call, please
contact Liolios Group at 1-949-574-3860. 
A replay of the call will be available after 11:30 a.m. Eastern time
on the same day until January 5, 2013.  
Toll-Free Replay Number: 1-877-870-5176  
International Replay Number: 1-858-384-5517  
Replay PIN #: 4573892  
For more information about Redknee and its solutions, please go to
www.redknee.com.  
About Redknee  
Redknee is a leading global provider of innovative communication
software products, solutions and services. Redknee's award-winning
solutions enable operators to monetize the value of each subscriber
transaction while personalizing the subscriber experience to meet
mainstream, niche and individual market segment requirements.
Redknee's revenue generating solutions provide advanced converged
billing, rating, charging and policy for voice, messaging and new
generation data services to over 90 network operators in over 50
countries. Established in 1999, Redknee Solutions Inc. (TSX:RKN) is
the parent of the wholly-owned operating subsidiary Redknee Inc. and
its various subsidiaries. References to Redknee refer to the combined
operations of those entities. For more information about Redknee and
its solutions, please go to www.redknee.com. 
About Nokia Siemens Networks  
Nokia Siemens Networks is the world's specialist in mobile broadband.
From the first ever call on GSM, to the first call on LTE, we operate
at the forefront of each generation of mobile technology. Our global
experts invent the new capabilities our customers need in their
networks. We provide the world's most efficient mobile networks, the
intelligence to maximize the value of those networks, and the
services to make it all work seamlessly. With headquarters in Espoo,
Finland, we operate in over 150 countries and had net sales of over
14 billion euros in 2011. http://www.nokiasiemensnetworks.com 
Forward-Looking Statements  
Certain statements in this document may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and
other factors which may cause our actual results, performance or
achievements, or industry results, to be materially different from
any future results, performance or achievements expressed or implied
by such forward-looking statements. When used in this document, such
statements use such words as "may," "will," "expect," "continue,"
"believe," "plan," "intend," "would," "could," "should," "anticipate"
and other similar terminology. Forward-looking statements are
provided for the purpose of providing information about management's
current expectations and plans relating to the future. Persons
reading this news release are cautioned that such information may not
be appropriate for other purposes.  
Such forward-looking statements include the statements regarding the
Acquisition, including the closing of the Acquisition, and may also
include financial and other projections as well as statements
regarding Redknee's future plans, objectives or performance for the
current period and subsequent periods and regarding the markets for
our products. These statements reflect current assumptions and
expectations regarding future events and operating performance and
speak only as of the date of this document. Forward-looking
statements involve significant risks and uncertainties, should not be
read as guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors could cause actual results to
vary significantly from the results discussed in the forward-looking
statements, including, but not limited to, the possibility that any
conditions to closing of the Acquisition under the Agreement,
including regulatory approvals, may not be satisfied or waived, the
possibility that Redknee will be unable to satisfy the conditions
precedent to the loan facility to receive the necessary financing, a
material adverse change in the affairs of Nokia Siemens Networks
and/or Redknee or a development materially adversely affecting the
financial markets, and the factors discussed under the "Risk Factors"
section of Redknee's most recently filed AIF which is available on
SEDAR at www.sedar.com and on Redknee's web-site at www.redknee.com,
and with respect to Nokia including Nokia Siemens Networks on pages
13-47 of Nokia's annual report on Form 20-F for the year ended
December 31, 2011 under Item 3D. "Risk Factors." Other unknown or
unpredictable factors or underlying assumptions subsequently proving
to be incorrect could cause actual results to differ materially from
those in the forward-looking statements.  
Although the forward-looking statements contained in this document
are based upon what we believe are reasonable assumptions, we cannot
assure investors that our actual results will be consistent with
these forward-looking statements. We assume no obligation to update
or revise these forward-looking statements to reflect new events or
circumstances, except as required by securities law. 
SOURCE: Redknee Solutions Inc.
Contacts:
Investor Enquiries
Redknee
David Charron, Chief Financial Officer
+1 905 625 2943 
Redknee Investor Relations
Matt Glover or Michael Koehler
Liolios Group, Inc.
+1 949 574 3860 
Media Enquiries
Redknee
Ian Hood or Matt Humphries
Babel PR
+44 (0)20 7434 5559
redknee@babelpr.com 
Nokia Siemens Networks
Media Relations
+358 7140 02869
mediarelations@nsn.com
 
 
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