Symphony Services, Teleca Merge To Form Symphony Teleca Corporation

Symphony Service Corp., a global product development services provider for Independent Software Vendors (ISVs) and Teleca, a supplier of product development services and solutions for mobile appliance Original Equipment Manufacturers (OEMs) and telecommunications operators, have announced that they have entered into a definitive merger agreement to create Symphony Teleca Corporation, the first company exclusively focused on helping clients rapidly develop, manage and support software for emerging cloud and enterprise mobility solutions in the connected world. The transaction, which is approved by the boards of directors of both companies, will build upon the complementary strengths of each company to create a truly global leader in the transformation of software, connected devices and enterprise mobility.

The primary drivers of the combination are the growing influence of mobility and the cloud on software and software-enabled product development, and the rising adoption and enormous market opportunity of enterprise mobility. Symphony Teleca Corporation’s increased scale, scope and global capabilities enhances its long-term value for customers, employees and investors.

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The company will be head-quartered in Palo Alto, California and led by industry veteran Sanjay Dhawan as Chief Executive Officer.

“This union is about a strategic fit between two experienced and well-respected global companies that together will continue to serve existing customers and new organisations as the clear services partner of choice for those in the business of making or using software and software-enabled products in the connected world,” said Dhawan. “Symphony Teleca is global in scale, has clear leadership in the areas that will define next-generation cloud and connected software applications, boasts one of the largest R&D capabilities focused on enterprise software and mobility, and employs one of the most experienced global services teams in the industry.”

“The strategy driving this merger is compelling,” said Dr. Romesh Wadhwani, Founder, Chairman and Chief Executive Officer, Symphony Technology Group. “Enterprise software, cloud and mobile technologies are at the beginning of a significant convergence and transformation, changing the way products are built, commercialised and operated across service-provider networks, enterprise networks and an array of personal devices. This presents extraordinary opportunities for our combined company to accelerate its growth and creates a formidable industry competitor with the most comprehensive solution portfolio available.”

“Users are demanding mobile access to enterprise applications and expect an ‘app store-like’ environment for their enterprise software needs,” stated Stephen Drake, Vice President, Mobility and Telecommunications, IDC. “Additionally, CIOs and corporate IT organisations are being forced to bridge the gap between consumer and corporate mobile computing and must find ways to support, secure and manage a myriad of mobile and connected devices, platforms and formats. There is clearly a market need for service providers, such as Symphony Teleca, to develop and manage the next-generation of enterprise mobility solutions and connected devices.”

Ramanan Raghavendran, Managing Director, TH Lee Putnam Ventures and Board of Directors member, Symphony Services, said: “As consumer devices continue to make their way onto corporate networks, combined with a growing list of in-house and web-based applications, substantial new requirements have emerged to effectively support mobility services. Enterprises will place significant value on a partner who can assist with the selection of solution components, systems integration and the ongoing management of mobility services. Symphony Teleca’s ability to enable software-as-a-service and mobility is highly relevant in today’s market, and this merger is particularly well-timed.”

The merger between Symphony Services and Teleca unites two technology services innovators, both with complementary expertise and skills that will support the next generation of software and mobility for global organisations.

Symphony Teleca Corporation solves traditional and contemporary development and commercialisation challenges arising from cloud computing, SaaS delivery and cross-platform mobility for customers. The company offers innovative technology, services and engagement models as strategic extensions of client product and R&D teams. Symphony Teleca brings together the traditional Symphony software product development expertise with Teleca’s leading software services and solutions for the mobile market to create a comprehensive and powerful services offering for ISVs, connected device makers, service providers and enterprises.

“There are colliding forces that are rapidly changing the landscape of technology today,” said Rene Svendsen-Tune, President and Chief Executive Officer, Teleca. “We recognise that an enormous market need exists to not only help our current clients leverage this innovation, but this merger also offers a compelling solution to global ISVs, service providers, device manufacturers and enterprises who are eager to reap the business benefits of the connected world. We remain committed to our valued clients, and we are confident they will continue to experience the same levels of service, expertise and success they have come to rely on.”

Morgan Keegan served as the exclusive financial advisor to Symphony Services, and Orrick, Herrington & Sutcliffe LLP, and Bird & Bird Advokat AB served as Symphony Services’ legal advisors. Jefferies & Company, Inc. served as the exclusive financial advisor to Teleca AB, while Shearman and Sterling and Advokatfirman Vinge KB served as Teleca AB’s legal advisors.