Hansen Technologies acquires Sigma Systems for $117m

Australia’s Hansen Technologies has agreed to acquire catalog-driven software vendor Sigma Systems for C$157 million ($116.8 million).

Found in 1996, Sigma provides enterprise catalog-driven software products to the communications, media and high-tech sectors.

The Toronto-based BSS firm has over 70 customers in 40 markets, including  Tier 1 telcos such as Vodafone, Liberty Global, Telstra (Australia), Altice, Cox Communications (USA), Ziggo (Netherlands), Telkomsel (Indonesia), J:Com (Japan), Inmarsat (UK), Telmex (Mexico), Tiscali (Italy), Telus (Canada), Sky (UK), EWE TEL (Germany) and ViaSat (USA).

It has 480 employees with offices located in Toronto, London and Wales (UK) and Pune, India.

Andrew Hansen, chief executive officer of Hansen Technologies, said the acquisition is a strategic move to enhance the company’s proposition to the telecoms, pay TV and energy verticals.

Hansen said the company has driven an exceptional growth strategy through acquisitions over the past 10 years, achieving a compound annual growth rate of 28% over the last four years.

“Bringing Sigma Systems onboard further strengthens our ability to provide valuable solutions to our customer base and creates new expansion opportunities to cross-sell Sigma’s software solutions into our broad base of energy customers,” he said.

In 2018, Sigma reported revenue of C$73.1 million and an EBITDA of C$18.8 million.

Through the acquisition of Sigma, Hansen Technologies expects to “significantly” expand its scale and scope in the telecoms sector.

“Sigma’s proprietary products sit within or adjacent to the company’s core business of billing and customer management, and are well designed to capture growth opportunities from the rollout of new telecommunications services such as 5G,” the company said.

The acquisition is set to close on May 31. Hansen Technologies said the acquisition will increase its pro-forma basis share of revenue from the telecoms sector to 38% from a reported 17% in 2018.