© 2012 Infotech Enterprises. All Rights Reserved
We deliver Global Engineering Solutions.
Efficiently.
March 18, 2014
S o f t e n t i a l , I n c . a c q u i s i t i o n
2
Quick Facts
Founder(s) /
Incorporation
Srinivas Tipirneni
2000, Privately Held
Headquarters
Herndon, VA
People
~140 FTEs
Core Competence
Business/IT Service Management, Service Assurance
Industry Focus
Telecom, Enterprise, Public Sector
Financials
(FY = Jan – Dec)
Revenues: $17 Million
EBITDA :
>25%
Client Concentration
Top 5 customers contribute 55% of revenues
Top 10 customers contribute 75% of revenues
Softential supports Communication Service Providers, Cable/Multi-System Operators and
Enterprise customers in the areas of Business Service Management and Service Assurance
Softential designs, implements and manages systems and applications that allow customers
to reliably monitor and control the performance of their communication networks and
business services in real time through “single pane of glass” dashboards
© 2012 Infotech Enterprises
Marketing & Offer Management
Service Development & Management
Resource Development & Management
Supply Chain Development & Management Strategy & Commit Infrastructure Lifecycle Management Product Lifecycle Management Operations Support & Readiness
Fulfilment Assurance Billing &
Revenue Management
Customer Relationship Management
Service Management & Operations
Resource Management & Operations
Supplier/Partner Relationship Management
3
Softential is an attractive fit to our Telecom strategy
Marketing & Offer Management
Service Development & Management
Network Development & Management
Supply Chain Development & Management
Strategy & Commit Infrastructure Lifecycle Management Product Lifecycle Management Operations Support & Readiness
Fulfilment Assurance Billing &
Revenue Management
Customer Relationship Management
Service Management & Operations
Network Management & Operations
Supplier/Partner Relationship Management
1
Acquire expertise and referenceable
customers around IT/Business Service
Management for CSPs, MSOs and
Enterprise markets
$17M / CY13
(standalone)
1
1
2
Leverage Plan/Build/Run model to
additionally deliver Managed NOC
services to existing and new clients
across all Infotech Geos
$30M / CY16
(with synergies)
2
2
I n f r a s t r u c t u r e
O p e r a t i o n s
Maintain Margin >25%
Service Level Management Availability Management Capacity Management Service Continuity Management Financial Management
Service
Delivery
Business Services
Service Management &
Service Assurance
+
Network Management
Technology
Softential
Services
Network & IT Infrastructure
Plan
Design and automateBuild
Develop, configure, test and integrate
Run
24/7 support desk, monitor & manage
What Softential Does
Quality of Service Quality of User Experience Configuration Management Release Management Incident Management Problem Management Change Management
Service
Support
Dashboard© 2012 Infotech Enterprises
Key Customers & Partners
5
“ We’ve used Application Management Services from several companies and what separates Softential is
the quality of the team. The Softential AMS team outperformed all the others in managing and enhancing
our solution environments. Exceptional technical skills, fast learners, and extremely responsive. Softential
is the only AMS team that we’ve considered as a true extension of our in-house team.”
Marketing & Offer Management
Service Development & Management
Resource Development & Management
Supply Chain Development & Management Strategy & Commit Infrastructure Lifecycle Management Product Lifecycle Management Operations Support & Readiness
Fulfilment Assurance Billing &
Revenue Management
Customer Relationship Management
Service Management & Operations
Resource Management & Operations
Supplier/Partner Relationship Management Marketing & Offer Management
Service Development & Management
Network Development & Management
Supply Chain Development & Management Strategy & Commit Infrastructure Lifecycle Management Service Lifecycle Management Operations Support & Readiness
Fulfilment Assurance Billing &
Revenue Management
Customer Relationship Management
Service Management & Operations
Network Management & Operations
Supplier/Partner Relationship Management
$7.2 B
6$10 B
I n f r a s t r u c t u r e
O p e r a t i o n s
$2.5 B
Run/Operate
Now/next 2-3 years
Plan/Build
Now
Network
Engineering
Now (Infotech)
Softential broadens our addressable market space
6
Plan
Design and automate Service Management solutionsBuild
Develop, configure, test and integrate Service Management solutions
Run
24/7 support desk, monitor & manage Service Management environment
Operate
Managed Service Assurance /NOC
© 2012 Infotech Enterprises
7
Plan
Design and automate Service Management solutionsBuild
Develop, configure, test and integrate Service Management solutions
Run
24/7 support desk, monitor & manage Service Management environment
Operate
Managed Service Assurance /NOCSoftential
US
Sales /
Presales &
Delivery
Infotech
Europe
Sales
Infotech
APAC/SEA/
India Sales
= Softential customers
= new services for Infotech’s clients
= new customers
= managed NOC services
Infotech’s
Infrastructure
services
for Softential’s
NAM customers
= new services for Infotech’s clients
= new customers
= managed NOC services
1
1
2
2
3
3
We can leverage multiple synergies
Service Management & Service Assurance
Customers = Telcos, Enterprise
> Focus on Networks
+
7Softential
Consulting
& Presales
Infotech
ME/Africa
Sales
Infotech
Global Delivery
,
Global Presales
Infotech
Consulting
& Presales
Implementing Best Practices
o
Enhanced scope of due diligence
from customer and operational perspectives
o
Identified and involved
Integration Team
very early in the transaction
Payment Structure
o
Revenue Multiple of 1.1x
upfront plus performance based earn-out in first year
o
Capital structure:
1:1 debt vs equity
Financial Benefits
o
Acquisition is
EPS accretive
o
ROE and ROCE improve by >0.5% basis points
on a consolidated basis
© 2012 Infotech Enterprises
9
Summarizing Softential’s value
•
Softential’s domain expertise and referenceable track record gives us
strong play in the
Service Management/Service Assurance
space across
multiple industry verticals
•
Softential’s consulting skills and global delivery model will support
geography expansion
(all revenues currently from US),
new service propositions and new client
acquisition
including cross-selling into Infotech’s key accounts
•
Opportunity to
expand into NOC/SOC Managed Services
to support long-term, annuity
business
•
By leveraging synergies, Infotech is
targeting significant growth from Telecom
Operate/Service Assurance business over next 3 years
•
Softential acquisition will be
earnings accretive
and have
positive impact on other
financial parameters
We deliver Global Engineering Solutions.
Efficiently.
www.infotech-enterprises.com
