SOURCE: Birdstep Technology

May 14, 2007 11:13 ET

Birdstep Acquires ServiceFactory SF AB

OSLO, NORWAY -- (MARKET WIRE) -- May 14, 2007 -- Birdstep Technology ASA has signed an agreement to acquire the Swedish services provisioning and access management company ServiceFactory AB. ServiceFactory adds customers and core server competence for mobile operator deployments.

Birdstep has signed a share purchase agreement to acquire ServiceFactory for a total consideration of Euro 12.5 million in Birdstep shares at a share price of NOK 11.45 a share, equal to the average share price 30 calendar days prior to signing. The acquisition is scheduled for closing at the Extraordinary General Meeting in Birdstep on May 29th.

Service Factory, headquartered in Stockholm, Sweden, enables mobile operators and service providers deliver and manage easy to use broadband services through a scalable server solution developed for large-scale deployments. In 2006, the company reached EUR 2.8 million in revenue. Fourth quarter 2006 revenue, was Euro 1.18 million (11 million SEK) with a positive EBITA of 16%. In 2007, the company is already on track towards profitability on the high growth mobility and connectivity market.

"We are very pleased to have ServiceFactory join our journey. The company strengthens Birdstep with core server competence and enables us to speed up time to market on advanced provisioning, performance management and service management to our customers", says Petri Markkanen, CEO of Birdstep Technology.

ServiceFactory is a leading European provider of systems for IP-based services and access management. Service Factory's core product Orbyte®, developed originally within TeliaSonera, has been in commercial service since 1995. Mobile operators like TeliaSonera, TDC, Bouygues Telecom, Sunrise, DNA Finland, Eircom and the global partner Ericsson are today customers of Service Factory.

POD Venture Partners, TeliaSonera, Brainheart Capital and key employees today own the company.

We are exited to join forces with Birdstep and to become a substantial owner going forward. Our ambition is to assist the company to further growth through a board member position", says Tom Nyman, POD Venture Partners and chairman of Service Factory

Birdstep is giving a presentation of the Acquisition at 08:30 AM the 15th of May 2007 at Hotel Continental, Oslo. The presentation will also be available as a webcast at: http://streamsync.qbrick.com/05208/2007/q1/1505/

NOTES TO EDITORS

About Birdstep (www.birdstep.com)

Birdstep Technology ASA is a public company listed on the Oslo Stock Exchange (OSE) under ticker 'BIRD'. The company is headquartered in Oslo, Norway with four wholly-owned subsidiaries: Birdstep AB in Sweden, Birdstep Technology Inc. in Seattle, Birdstep Technology in San Francisco, US and Birdstep Technology Ltd in Cambridge, UK.

Birdstep Technology is a global software development, marketing and sales company offering seamless connectivity and mobility client software for mobile data users on laptops, pocket PC and Smartphones as well as state-of-the-art embedded database technologies.

Birdstep has an installed base at more than 40 operators globally including T-mobile Group, Vodafone Group, Orange, TIM, Turkcell, TMN, KPN, Sprint, Telenor and TeliaSonera. The company also cooperates with global partners such as Nokia, SonyEricsson, Cisco, Intel, Ericsson, Nortel Networks, HP and Fujitsu Siemens Computers.

About ServiceFactory (www.servicefactory.com)

ServiceFactory is the leading European supplier of systems for broadband services and access management. The Orbyte© platform allows service providers to deploy and manage innovative IP-based services by integrating into existing business support systems. ServiceFactory is constantly in the forefront pioneering advanced technologies and innovative services, including Mobile Office, VoIP and WiMAX. Orbyte has been in commercial service since 1995 and is today deployed in leading operators' networks throughout Europe, managing millions of customers. ServiceFactory has a large installed base of mobile operators including customers such as TeliaSonera, TDC, Bouygues Telecom, Sunrice, DNA Finland, Eircom, Telemig, Euskaltel, AmazonasTelecom and Linkem.

Copyright © Hugin ASA 2007. All rights reserved.

Contact Information

  • For further information, please contact:
    Petri Markkanen
    CEO of Birdstep Technology ASA
    phone +46 70 323 33 22

    Robert Vangstad
    VP Marketing & Communications, Birdstep Technology ASA
    phone +46 730 58 45 00
    Email:robert.vangstad@birdstep.com
    Website: www.birdstep.com