ORANGE, Conn.--()--Tangoe, Inc. (NASDAQ: TNGO), a leading global provider of Communications Lifecycle Management (“CLM”) software and related services, announced that it has acquired privately held ProfitLine, Inc., a global provider of telecom expense and mobility management services in a transaction that closed today, December 19, 2011. Under the terms of the acquisition agreement, Tangoe will pay approximately $23.5 million in cash, $14.5 million of which was paid upon closing, $4.5 million of which will be paid in 12 months, and $4.5 million of which will be paid in 18 months.
“Tangoe has a proven history of complementing our organic growth by successfully identifying and integrating acquisitions, which we believe is among the core competencies that made us an industry leader.”
“We are very excited to announce the acquisition of ProfitLine, which we believe is among the largest independent CLM providers behind Tangoe. The addition of ProfitLine expands our customer base, broadens our vertical coverage, and provides an attractive cross-sell opportunity as we leverage Tangoe’s broader global footprint,” said Al Subbloie, president and CEO of Tangoe. “Tangoe has a proven history of complementing our organic growth by successfully identifying and integrating acquisitions, which we believe is among the core competencies that made us an industry leader.”
ProfitLine delivers a suite of solutions that address the management of fixed and mobile telecom expenses and mobile device management helping global enterprises and government agencies optimize their telecom spend and employee productivity. ProfitLine’s solutions have been deployed across a range of industries, including retail, financial services, healthcare, automotive, energy/utilities, manufacturing, technology, travel/hospitality and government, where the company has received approval to be on the U.S. Government’s GSA schedule.
Tangoe expects ProfitLine to contribute approximately $0.4 million in revenues during the fourth quarter of 2011, and it does not expect the acquisition to have a material impact on non-GAAP profitability. For the full year of 2012, the company expects ProfitLine to contribute $14 million to $15 million in revenue, and the acquisition is expected to be slightly accretive to non-GAAP net income per share. Management will provide detailed first quarter and full year 2012 guidance, including the expected financial impact of ProfitLine, when it announces fourth quarter 2011 financial results.
In conjunction with this announcement, Tangoe will host a conference call today at 5:00 p.m. ET. To access this call, dial 888.401.4685 (United States), or 719.325.2456 (international), with conference ID # 4534949. A live webcast of the conference call will be accessible from the investor relations page of Tangoe's website at http://investor.tangoe.com/, and a recording will be archived and accessible at http://investor.tangoe.com/events.cfm. A recording of this conference call will also be available through January 2, 2012, by dialing 877.870.5176 (United States), or 858.384.5517 (international). The recording access code is 4534949.
Tangoe is a leading global provider of Communications Lifecycle Management (CLM) software and services to a wide range of global enterprises. CLM encompasses the entire lifecycle of an enterprise’s communications assets and services, including planning and sourcing, procurement and provisioning, inventory and usage management, invoice processing, expense allocation and accounting and asset decommissioning and disposal. Tangoe’s Communications Management Platform (CMP) is an on-demand suite of software designed to manage and optimize the complex processes and expenses associated with this lifecycle for both fixed and mobile communications assets and services. Tangoe’s customers can also manage their communications assets and services by engaging Tangoe’s client service group.
Additional information about Tangoe can be found at www.tangoe.com. Tangoe is a registered trademark of Tangoe, Inc.
ProfitLine provides global outsourced Telecom Expense and Mobility Management services and solutions. ProfitLine addresses the growing challenges that global enterprises face in the day–to-day management of fixed and mobile telecom expenses, mobile devices, communications services, and carrier relationships. Our experts provide sourcing, inventory, device and expense management solutions to enterprises, federal agencies, multinational organizations, and global integrators and suppliers of communications products. Based in San Diego, ProfitLine was founded in 1992.
Non-GAAP Financial Measures
Non-GAAP net income excludes stock-based compensation expenses, amortization of intangible assets and deferred financing costs, restructuring charge and decrease (increase) in fair value of warrants for redeemable convertible preferred stock. Management presents this non-GAAP financial measure because it considers it to be an important supplemental measure of performance. Management also believes that this non-GAAP financial measure provides additional insight for analysts and investors in evaluating the Company's financial and operational performance. However, this non-GAAP financial measure has limitations as an analytical tool and is not intended to be an alternative to financial measures prepared in accordance with GAAP.
Forward Looking Statement
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "will," "would", similar and “target” expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about, our estimates regarding future revenue and financial performance. We may not actually achieve the expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the expectations disclosed in the forward-looking statements we make. More information about potential factors that could affect our business and financial results is contained in our Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on November 14, 2011. Additional information will also be set forth in our future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We do not intend and undertake no duty to release publicly any updates or revisions to any forward-looking statements contained herein.