Press Release:
PROVIDENCE EQUITY, WARBURG PINCUS COMPLETE
ACQUISITION OF TELCORDIA
Contact:
Krista Wald
Telcordia Technologies, Inc.
732/699-5050
kwald@telcordia.com
Andrew Cole
Providence Equity Partners Inc.
Citigate Sard Verbinnen for Providence Equity
212/687-8080
acole@sardverb.com
Kenny Juarez/Jennifer Powers
Warburg Pincus
Abernathy MacGregor for Warburg Pincus
212/371-5999
PISCATAWAY, NJ - March 15, 2005 - Telcordia Technologies, Inc. announced today that private equity firms Providence Equity Partners and Warburg Pincus completed a transaction to acquire the telecommunications software and services business from Science Applications International Corporation (SAIC). The two firms are co-equal partners in the deal; further terms of the transaction were not disclosed.
Telcordia, based in Piscataway, N.J., is a leading global provider of telecommunications software and services. The company's solutions handle the complex tasks required to develop, maintain, monitor and fix today's carrier networks. In the U.S. alone, an estimated 80 percent of all telephony traffic relies upon Telcordia software.
Commenting on the transaction, Telcordia CEO Matthew Desch said: "As the industry consolidates and evolves, Telcordia is advancing its market leadership position with new products and services that can help our customers reduce overhead and accelerate service delivery -- critical objectives in today's competitive telecommunications environment."
Telcordia plays a pivotal role with service providers globally, having invented much of the underlying software and applications for today's communications networks.
"Telcordia is a true market leader with a unique combination of people, technology, customers and experience," said Mark Pelson, a managing director of Providence Equity Partners. "We look forward to working with management and Warburg to expand Telcordia's global customer base and further its leadership in the industry."
Telcordia's customers, a list of global Tier-1 service providers, are facing new challenges in the form of technological innovation and competition. Over the past three years, Telcordia has invested substantially in products and services that are specifically tailored to assist the transition to new competitive platforms and services.
"For the major service providers, no service is offered in isolation," said Larry Bettino, a Warburg Pincus managing director who oversees the firm's telecommunications investments. "The introduction of new products and services requires substantial integration into a complex patchwork that may contain several generations of technology. Only Telcordia has the heritage and the domain leadership to perform such tasks for its customers on a seamless basis."
Telcordia offers consulting, systems integration, research and development and network planning services and helps wireless and wireline carriers evolve their networks to support valuable, high-margin services.
About Telcordia Technologies, Inc.
Telcordia Technologies, Inc. is a leading global provider of telecommunications software and services for IP, wireline, wireless and cable. By delivering on its Elementive strategy of providing flexible, standards-based solutions that optimize complex network and business support systems, Telcordia enables customers to aggressively reduce costs and grow revenues. Telcordia is headquartered in Piscataway, N.J, with offices throughout the United States, Canada, Europe, Asia, Central and Latin America. (www.telcordia.com)
About Providence Equity Partners
Providence Equity Partners Inc. is one of the world's leading private investment firms specializing in equity investments in media and communications companies. The principals of Providence Equity manage funds with over $9 billion in equity commitments and have invested in more than 80 companies operating in over 20 countries since the firm's inception in 1991. Current and previous areas of investment include cable television content and distribution, wireless and wireline telephony, publishing, radio and television broadcasting and other media and communications sectors. Significant investments include VoiceStream Wireless, Metro-Goldwyn-Mayer, Warner Music Group, PanAmSat, AT&T Canada, eircom, Casema, Kabel Deutschland, Language Line, F&W Publications, ProSiebenSat.1, and Bresnan Broadband Holdings. The firm has offices in Providence, New York and London. For more information please visit www.provequity.com.
About Warburg Pincus
Warburg Pincus has been a leading private equity investor since 1971. The firm currently has approximately $14 billion under management, and invests in a range of industries including information and communication technology, financial services, healthcare, LBOs and special situations, media and business services, energy and real estate. Warburg Pincus also has a long history as a leading investor in the information and communication technology sectors, including investments in Avaya [NYSE: AV], BEA Systems [Nasdaq: BEAS], Bharti Tele-Ventures [BSE: BHARTI.IN], Harbour Networks, NeuStar and VERITAS Software [Nasdaq: VRTS]. The firm is an experienced partner to entrepreneurs seeking to create and build durable companies with sustainable value. Warburg Pincus has an active portfolio of more than 115 companies spanning the entire spectrum of scale and maturity. For more information please visit www.warburgpincus.com.