On March 6, Cass announced that it has acquired Effective Telecoms Ltd. (Efftel), a privately-held UK-headquartered telecom expense management (TEM) company. The acquisition positions Cass to deliver telecom, facility management, and transportation services on a global scale, and for the European markets, makes Cass an immediate player. For Efftel, Cass’ leadership as a business process outsourcing vendor and its reach in verticals such as utilities, waste, facility management, and transportation, will provide Efftel customers with an expanded range of services and support.
With offices in both England and The Netherlands, Efftel will expand Cass’ reach in the European TEM market and add several key European accounts to its portfolio. Cass’ year of record-high earnings in 2016 positions the company well for continued growth and investment, particularly in the TEM space. Blue Hill notes that Cass reported fourth quarter 2016 growth from new customer wins, including accounts that migrated to Cass from competitors, and this growth is likely to have been driven significantly by Cass’ TEM business.
Efftel provides mobile and fixed telecom audit, procurement, and expense management services, as well as Mobile Management Services, including ordering, provisioning, helpdesk, financial management, and reporting and analytics for mobile devices. Efftel customers will be able to leverage the range of services offered by Cass, including sourcing, global bill payment, invoicing, auditing, negotiating and disputes, implementation, inventory and usage management, Business Intelligence (BI), reporting, and Managed Mobility Services (MMS).
Beyond TEM, Cass also supports categories such as transportation, facility management, utilities, and waste management. Additionally, Cass has a fairly broad partner channel including CompuCom and Lumenate for MMS and BYOD services, as well as Arrow Electronics for IT recycling capabilities.
Prior to the acquisition, Cass offered its full range of services in the US, Europe, Latin America, and Australia, and as of September 2016, had recently added audit and dispute, contract, billed inventory, and managed disputes to its managed services in the APAC (Asia/Pacific) region. David Rosenthal, founder and managing director at Efftel, will join Cass as managing director of European Services.
Blue Hill notes that TEM vendors active in the European and especially U.K. markets should be aware of Cass’ acquisition of Efftel as it positions Cass as an immediate competitor. From our coverage of the TEM market, Blue Hill has observed that Cass typically targets companies with around $20 million in annual telecom and mobility spend, with a significant portion of its busness coming from Fortune 500 companies. With its expanded presences in the U.K. and Europe through its acquisition of Efftel, Cass is poised to rapidly scale its TEM business in the European markets, especially for deals with a business process outsourcing or facilities management component.