Note: To support questions from enterprise buyers and private investors that are looking at Telecom Expense Management and the greater Communications Lifecycle Management world, Blue Hill is starting a monthly review of the key announcements made in this space from companies including, but not limited to: 2-markets, 4telecomhelp, ACCOUNTabill, Advantix, AMI Strategies, Asentinel, Avotus, Calero, Cass Information Systems (NASDAQ: CASS), Cimpl (formerly Etelesolv), Comview, EZwim, GSGTelco, IBM Global Services (NYSE: IBM), ICOMM, MDSL, mindWireless, MOBI, Mobichord, Mobile Solutions Services, MobilSense, MTS (NASDAQ: MTSL), Nebula, NetPlus, Network Control, One Source Communications, Softeligent, Tangoe (NASDAQ: TNGO), Telesoft, TNX, Valicom, vCom, and Visage.
Communications Lifecycle Management news items that have gotten Blue Hill’s attention in April 2017 include announcements from Cass, Telesoft, and Tangoe.
On April 27, Cass Information Systems announced its first quarter 2017 earnings. The company reported a 10% increase in earnings per diluted share compared to first quarter 2016, and increases in revenue and net income of 5% and 8%, respectively. Net income for the period was $6.3 million.
Most notably, Cass saw a 29% increase in transactions for its Facility Expense business, which includes its electricity, gas, waste, and telecom expense management divisions. Cass attributed much of this increase to new customer wins from several accounts that migrated from competitors.
In February, Blue Hill covered Cass’ fourth quarter and full year 2016 earnings report, in which the company announced a 7.2% increase in fourth quarter 2016 Facility Expense dollar volume compared to the same period in 2015. Continued growth in its Facility Expense business suggests growth in Cass’ telecom expense management division as well. Blue Hill theorizes that many of the new account wins likely came from customers in telecom, especially those that migrated from market leaders in the space.
On April 6, Telesoft announced the appointment of Charles Layne as Chief Executive Officer and member of the Board of Directors. Thierry Zerbib, Co-Founder and CTO of Telesoft, will continue to lead the product and technology side of the business.
Prior to joining Telesoft, Layne served as President and CEO of Signature Technology Group, a Data Center Services provider, leading the company to triple its global revenue and employee base under his tenure. Layne has also held senior leadership positions at Microsoft and Insight Enterprises.
In January, Blue Hill wrote about additional executive changes at Telesoft including the appointments of Tamara Saunders and Don Luby as Chief Financial Officer and Senior Vice President of Sales, respectively, and Charlotte Yates to its Board of Directors.
The Telecom Expense Management market is clearly attracting attention from not only seasoned executives but also outside investors. Which leads me to my next point…
Perhaps the biggest change that has happened in TEM in recent years is Tangoe’s April 28th announcement that Marlin Equity Partners will acquire all outstanding shares of Tangoe for $6.50 per share in cash. Marlin Equity Partners plans to merge Tangoe with Asentinel, another market leader in TEM and one of Marlin’s portfolio companies, while maintaining the Tangoe brand name and CEO Jim Foy.
Will the combined company create a new global superpower? And is such a thing in TEM useful, or even possible? Blue Hill covers this and more, including the next generation of TEM – which we dub IT Enterprise Management (ITEM) – in our latest report.