SOURCE: CTI Group (Holdings) Inc

December 22, 2006 16:23 ET

CTI Group Acquires a Leading UK Provider of Wireless Billing Solutions -- Ryder Systems Ltd

Acquisition Accelerates CTI Group's Growth Strategy by Expanding Billing Solutions Into Blue-Chip Wireless Service Providers

INDIANAPOLIS, IN -- (MARKET WIRE) -- December 22, 2006 -- CTI Group (Holdings) Inc (OTCBB: CTIG), an international provider of electronic and on-line billing solutions and developer of VoIP business applications, today announced that it acquired Ryder Systems Ltd for approximately $11.0 million.

Ryder Systems Ltd, located in Blackburn, UK, is a European market leader in the provision of electronic and on-line billing services to telecommunications service providers principally in the mobile phone market.

Ryder's products: Analysis, SplitBill and Dynamic Reports are provided to blue-chip mobile phone service providers, including Vodafone, Orange, T-Mobile, Verizon, Eircom and Opal Telecoms in 6 countries across Europe. They provide business users the capability to manage their mobile and broadband services with the benefit of considerable cost savings to business users and service providers as well as increased customer retention for the latter. Ryder's products are provided as hosted, licensed and managed solutions with a recurring license business model. Since addressing this market in 2000, Ryder Systems has experienced annual revenue growth rates of greater than 20%. European legislation requiring businesses to accurately differentiate personal and business mobile use for tax purposes ensures a compelling business case to incorporate Ryder solutions in every enterprise business workflow. Ryder Systems' products are used by over 10,000 enterprises including most of the Times 100.

"This is a compelling strategic transaction that we expect will provide significant synergies between both companies and affords growth opportunities for our customers and shareholders," said John Birbeck, CTI Group's chairman, president and chief executive officer. "Our SmartBill electronic bill management systems are successful in the USA in the wireline market, whilst Ryder's products are thriving in Europe in the mobile phone market. By integrating our operations and migrating both products to the new markets with the same resources, we have the opportunity to leverage the maximum from both markets. CTI Group's VoIP applications for both IP Centrex and end user systems will also gain new market opportunities as VoIP and mobile services merge," said Mr. Birbeck.

"We expect the addition of Ryder to CTI Group will enable us to become a world leader in electronic and on-line bill presentment and analysis in the business telecoms market. We believe these markets will continue to grow with the introduction of more VoIP and media content in mobile services to enterprises, making it essential to manage and optimize these disparate communications systems and networks," enthused Mr. Birbeck.

"As we execute this acquisition we intend to maintain the momentum to create innovative products and penetrate new markets to achieve our growth objectives. We expect these initiatives combined with the transaction will position CTI Group for sustained value creation," said John Birbeck.

"CTI Group shares our goal to dominate the telecommunications business electronic bill management market," said Andrew Wilson, VP Sales and Marketing for Ryder Systems. "Our combined strength in this market in addition to CTI's new developments in the expanding VoIP applications market allows us to enhance our offerings to our global service provider customer base," said Mr. Wilson.

"Ryder Systems has a strong team with a great business model and a record of innovations in their market," continued John Birbeck. "We welcome Ryder Systems' team into CTI Group and anticipate they will continue their growth momentum and success."

About CTI Group

CTI Group (Holdings) Inc ("CTI Group" or the "Company") designs, develops, markets and supports intelligent electronic invoice processing and enterprise communications management software and services solutions. The Company is comprised of three business segments: Electronic Invoice Management ("EIM"), Telemanagement ("Telemanagement") and Patent Enforcement Activities ("Patent Enforcement"). EIM designs, develops and provides services and software tools that enable telecommunication service providers meet the needs of their enterprise customers to receive detailed electronic invoicing of all their services. The Company's EIM software product line -- SmartBill® is sold directly to telecommunication service providers who then market and distribute the software to their enterprise customers. Using the Company's software and services, telecommunication service providers are able to electronically invoice their enterprise customers in a form and format that enables the enterprise customers to improve their ability to analyze, allocate and manage telecommunications expenses while reducing the resource investment required to process, validate, approve, and pay their telecommunication invoices. Telemanagement designs, develops and provides software and services used by enterprise, governmental and institutional end users to manage their telecommunications service and equipment usage. The Company's Telemanagement software product is Proteus™. Patent Enforcement involves the licensing, protection, enforcement and defense of the Company's intellectual property, including patents.

Safe Harbor Statement

This release may contain "forward-looking" statements. Examples of forward-looking statements include, but are not limited to: (a) projections of revenue, capital expenditures, growth, prospects, dividends, capital structure and other financial matters; (b) statements of plans and objectives of the Company or its management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about the Company and its business relating to the future; and (e) any statements using the words "could," "should," "anticipate," "expect," "may," "project," "intend," "will" or similar expressions. The Company's ability to predict projected results or the effect of events on the Company's operating results is inherently uncertain. Forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those discussed in this document, including, but not limited to, the risk that the Company may fail to realize all of the anticipated benefits of the acquisition of Ryder Systems Ltd, the risk that the Company will not be able to attract and retain customers to purchase its products, the risk that the Company will not be able to commercialize and market products; results of research and development; technological advances by third parties; competition; and future capital needs of the Company. You should not place any undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update forward-looking statements contained in this press release, and any such forward-looking statement speaks only as of the sale on which it is made. Readers are referred to documents filed by CTI Group with the U.S. Securities and Exchange Commission.

Contact Information

  • Contact:
    John Birbeck
    Phone: 317-262-4666