Symphony
Service Corp., a leader in global product development services for
Independent Software Vendors (ISVs) and Teleca,
a world-leading supplier of product development services and solutions
for mobile appliance Original Equipment Manufacturers (OEMs) and
telecommunications operators, today 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.
Symphony Teleca is well positioned to be the Global Services Partner
for the Connected World:
Strong financial base, with over 200 blue-chip customers and 6,000
employees globally
12 delivery centers located in India, China, Europe, U.S., Japan and
South America
More than 20 years of commercial software and mobile device
development expertise acquired as the product development services
partner of the world’s leading software manufacturers, mobile device
OEMs, enterprises, and telcos/service providers
Combination of enterprise software and mobile appliance development
capabilities makes Symphony Teleca the partner of choice for the
development, integration and operation of enterprise mobility
solutions and services
Industry’s most comprehensive enterprise mobility solution – including
a full complement of planning, deployment and operations-oriented
services
Real-time analytics platforms and services to help companies create
and execute predictive analytic models from multiple streams of data
generated by mobile, enterprise and Internet sources
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 organizations 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, commercialized 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.”
Market Dynamics
This is a time of dynamic change, increased complexity and explosive
growth within the market for enterprise software and enterprise
mobility. According to a report from Gartner, Inc., worldwide enterprise
software revenue was expected to surpass $267 billion in 2011, a 9.5
percent increase from 2010 revenue of $244 billion; and the firm
projects continued growth in 2012, with revenue forecast to reach $288
billion.1
Central to this rapid transformation of the enterprise software market
is enterprise mobility. IDC predicts that by 2015 the world’s mobile
worker population will reach 1.3 billion, representing 37.2 percent of
the total workforce.2 IDC earlier predicted that the market
for mobile applications would continue to accelerate, as the number of
downloaded apps was expected to increase from 10.7 billion worldwide in
2010 to 182.7 billion in 2015.3 Currently Salesforce.com’s
AppExchange alone has hundreds of different apps, and from March 2010 to
September 2011 there was a 263 percent growth in branded apps, with
business apps as the fastest-growing section in the Apple App Store.
“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 organizations 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.”
Complementary Strengths and Synergies
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
organizations.
Symphony Teleca Corporation solves traditional and contemporary
development and commercialization 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 recognize 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.
About Teleca
Teleca is a world-leading supplier of software solutions and engineering
services to the mobile and connected devices industries. Teleca's global
scale and reach is unique. Using tailored solutions, systems design,
integration and test we help our customers drive down development time,
cost and deliver best-in-class products. Teleca has 2,000 employees in
12 countries. For more information, please visit: www.teleca.com.
About Symphony Services
Symphony Services is a software innovation company. We help our clients
ideate, develop, deploy and manage innovative software and
software-enabled products. Our solutions address traditional and new
software product engineering challenges created by faster release
cadences, the need for mobile cross-platform user experiences and the
shift to a cloud delivery model. Symphony’s unique Outcome Certainty™
engagement model enables clients to accelerate their product experiences
while tackling a wide range of new development complexity and cost
challenges with guaranteed results. The company’s global client base
includes eight of the ten largest software manufacturers, along with
leading healthcare, retail, financial, telecom and clean-tech companies.
For more information, please visit www.symphonysv.com.
* Products mentioned herein may be trademarks or registered trademarks
of their respective companies.
1. Gartner, Inc., Forecast: Enterprise Software Markets,
Worldwide 2008-2015, 2Q 11 Update
2. Worldwide Mobile Worker Population 2011–2015 Forecast, (IDC #
232073, December 2011)
3. Worldwide and U.S. Mobile Applications, Storefronts, Developer,
and In-App Advertising 2011–2015 Forecast: Emergence of Postdownload
Business Models (IDC #228221, June 2011)
