Hansen Corporation acquires Pay TV billing assets of Naspers Irdeto business

3rd Jan 2013. Hansen Technologies Limited (ASX: HSN) has announced the acquisition of the Pay TV billing and customer care product line of Irdeto Inc, with effect from 1 January 2013. Terms have not been disclosed.

Irdeto Inc, a leader in content security, management and delivery for pay media companies , is a wholly owned subsidiary of Naspers, a multinational group of media and e-commerce platforms listed on the South African stock exchange (JSE: NPN).

After integration ICC is expected to represent 25% of Hansen’s total revenues, lifting Hansen’s annual sales to approximately A$75m. Initially the acquisition of ICC is expected to be marginally earnings accretive. After a “settling in period” the EBITDA and cash return generated is expected to steadily increase. The purchase is being funded entirely from Hansen’s its A$23.9m cash reserves.

The acquisition comes almost 10 months after Irdeto was involved in a series of allegations from The Australian Financial Review in which it was claimed the company had been the subject of piracy attacks in the 1990s by software company NDS, a former subsidiary of News Corporation. The allegations centered on claims NDS had hacked the encryption and access codes that its competitors, such as Irdeto, sold to pay-TV providers such as Austar and Foxtel to protect their services from pirate transmissions. The allegations have not resulted in any criminal investigations or charges being laid against News Corporation or NDS.

The acquisition of Irdeto’s billing software suite of products, rebranded to Integrated Customer Central (“ICC”), represents a complementary addition to Hansen’s existing billing and customer care business solutions in the telecommunications market and extends Hansen’s activities into the media and entertainment industry. Hansen expects its telecommunications billing experience to be valuable to ICC’s Pay TV customers as they move from a one-screen household model, to a multi-screen model incorporating the internet, mobile tablets and smartphones.

Irdeto ICC’s customers are located in over 40 locations around the world, with a growing involvement in new emerging markets. With offices in Carlsbad, California and Shanghai, China and personnel strategically located in Argentina, South Africa, India and the Netherlands. ICC represents an extension of Hansen’s geographic areas of influence, representing the potential for Hansen to leverage its broader business activities and products into these new markets.

Commenting on the acquisition, Hansen Technologies Ltd Chief Executive Officer Andrew Hansen said “the acquisition of ICC product line leverages our existing strengths in mission critical telecommunications billing, complex delivery projects and managed services.”

“I can confirm that we have agreed a reseller partnership with Irdeto that will see both companies working together to continue to bring added value to current ICC customers and to new Pay TV customers. We will be maintaining the R&D momentum already well-established by Irdeto in support of its growing content protection and multi-screen business, as well as assisting customers to evolve from the traditional one-screen household Pay TV model to a multi-screen model incorporating mobility through mobile tablets and smartphones”.

Graham Kill, CEO Irdeto, noted “Both Irdeto and Hansen have a respected reputation for customer commitment and innovation, which provides a common foundation for us to work together and build Hansen’s pay TV billing business for the future. We feel very positive about the partnership we have established and are confident it will enable us to package our respective solutions, where the need arises.”

About Hansen Technologies Limited
Hansen Technologies Limited is a leading provider of proprietary billing solutions and IT outsourcing services. Its flagship HUB billing software solutions have application across the Telecommunication, Electricity, and Gas and Water industries. HUB is increasingly providing the solution for the needs of energy companies as the push towards market deregulation expands and into telecommunication companies as they pursue convergence and rationalisation. Hansen provides facilities management and outsourcing services from its purpose-built data centres located in Melbourne. Hansen also supports the Classic Superannuation administration solution. Founded in 1971, Hansen has offices in Australia, United Kingdom, United States and New Zealand.

About Irdeto
Irdeto is a world leader in content security, management and delivery for pay media companies. Through its innovative conditional access, dynamic monetization and content security technologies, the company allows new forms of distribution for broadcast, broadband and mobile entertainment. Regionally headquartered in Amsterdam, Beijing, and San Francisco, the company employs approximately 1000 people in 24 locations around the world. Irdeto is a subsidiary of multinational media group Naspers (JSE: NPN).

Posted in M&A - Austr - S/W & Services and tagged , , , , , , , , , .