Science Applications International Corporation (SAIC) today agreed to sell its subsidiary Telcordia Technologies, a provider of telecommunications software and services, to Providence Equity Partners (Providence) and Warburg Pincus (Warburg) for $1.35 billion. Providence and Warburg will take an equal share in Telcordia.
Telcordia, based in Piscataway, New Jersey, helps communications companies mesh complex networks and add new high-speed technology on their existing networks in order for them to be able to sell valuable, high-margin services.
SAIC said in a statement that the company’s solutions handle the tasks required to develop, maintain, monitor and fix today’s carrier networks carrying over 80 percent of US telephony traffic.
“Telcordia consistently has proven itself a leader in the telecommunications industry and a solid contributor to SAIC,” said Kenneth C. Dahlberg, chairman and CEO of SAIC, which purchased the company from the Regional Bell Operating Companies in 1997.
“SAIC recognised that a new owner could provide Telcordia with opportunities to expand its global footprint,” continued Dahlberg. “We look forward to continuing our work with Telcordia as a business partner on both government and commercial opportunities.”
“Providence and Warburg, both long-term growth investors in technology, media and telecom companies, have domain expertise and excellent track records in the communications industry,” said Matt Desch, CEO, Telcordia. “Providence and Warburg have the resources available to enable us to reach our full potential, capitalise on our market-leading intellectual capital and secure a global leadership position.”
Completion of the sale is subject to customary closing conditions, including regulatory approval.