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: 4telecomhelp, ACCOUNTabill, Advantix, AMI Strategies, Anatole, 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, Softeligent, Tangoe (NASDAQ: TNGO), Telesoft, TNX, Valicom, vCom, Visage, and Vodafone Global Enterprise (NASDAQ: VOD).
Communications Lifecycle Management news items that have gotten Blue Hill’s attention in January 2017 include announcements from Tangoe and Telesoft.
On January 3, Tangoe announced that it has received two non-binding acquisition proposals, the first from Marlin Management Company LLC, an affiliate of Marlin Equity Partners, and the second a joint proposal from Clearlake Capital Group, LP and Vector Capital Management, LP. Marlin currently owns a 10.4% stake in Tangoe, and Clearlake and Vector own 14.78% and 9.85%, respectively. Tangoe also announced that the company will be unlikely to meet the March 10, 2017 deadline for completing its financial restatement process to remain listed on Nasdaq.
Blue Hill covered this announcement in greater detail in a recent report, in which we noted that Tangoe’s current internal efforts at unifying its platforms and providing an improved customer experience will likely continue regardless of whether Tangoe is acquired. As Marlin owns Asentinel, and Clearlake owns Calero – both large, global TEM players that frequently come up against Tangoe in competitive bids – the market dynamics and leadership positions will be affected by an acquisition from either bidder. Whatever the outcome, the market is increasingly favoring specialized and high-touch managed services TEM solutions, and both large, global TEM vendors and private investors must be aware of these trends when making plays in this space.
On January 23, Tangoe announced the appointment of Dhesi Ananchaperumal as Executive Vice President Engineering, heading Tangoe’s worldwide Engineering and Research and Development organization and reporting to Tangoe CEO, Jim Foy.
Prior to joining Tangoe, Ananchaperumal served as Senior Vice President of Engineering and Product Management at Dell EMC, directing the global product team across software, hardware, product management, architecture, and logical build professionals.
Given Tangoe’s recent acquisition proposals and its potential delisting, it is certainly an interesting time for Ananchaperumal to join Tangoe. As Tangoe represents the rollup of several smaller TEM platforms, the company has had some difficulty in the operational and technical aspects of supporting multiple distinct platforms and attempting to transition customers to a single offering. Blue Hill notes that bringing on an engineering lead with a strong technical background may allow Tangoe to fulfill its hopes of creating and supporting a single TEM platform. Additionally, as Tangoe expands beyond traditional TEM functions into supporting more sophisticated IT assets such as cloud and IoT, Ananchaperumal’s background at EMC will likely prove useful.
On January 17, Telesoft announced it has hired Tamara Saunders and Don Luby as Chief Financial Officer and Senior Vice President of Sales, respectively, as well as appointed Charlotte Yates to Telesoft’s board of directors.
Yates joins the board with over 30 years of experience in telecommunications, most notably co-founding and serving as CEO of Telwares, a provider of network and IT advisory and cost management services that was acquired by Tangoe in March 2011. Luby is a veteran in the TEM space with over 30 years of experience, most recently serving as VP of Sales at Tangoe. Saunders joins Telesoft with more than 20 years of experience, most recently serving as CFO of Telesphere and VP of Finance at Vonage.
Blue Hill covered this announcement in greater depth in a recent blog post, in which we noted that it is interesting that Telesoft is acquiring talent from Tangoe, and hints that further consolidation and shifts in market leadership positions are to come, especially after market leader Tangoe’s recent acquisition proposals and potential Nasdaq delisting.