Intec agrees to £237m offer from CSG as speculation mounts over rival bids

Intec Telecom Systems, the UK company that provides billing services to clients including Orange and Vodafone, has agreed a takeover offer from CSG Systems worth £236.7m.

Yet, Intec's share price soared 30 per cent beyond the 72p per share offer as analysts suggested a counterbid could emerge.

Intec, which counts 60 of the world's 100 largest communications companies among its clients, revealed it was in talks over a potential takeover at the end of July. The bidder was named as the US billing services company CSG yesterday.

The companies released a joint statement saying the two boards had reached an agreement on price and Intec would recommend the offer to shareholders. General Atlantic, which holds 11.8 per cent of Intec's shares, is backing the offer.

Jon Fletcher, an analyst at Altium Securities, said: "The offer makes strategic sense, combining the businesses to create the second largest business software services provider."

Other analysts believed the bid had come in disappointingly low. Julian Yates of Investec had expected the bid to be as much as 90p per share, saying, CSG's "low" bid could "prompt hopes of a counter offer". Yet the analyst dampened such hopes, saying Intec "has been on the block for a while".

Tintin Stormont, an analyst at Singer Capital Markets, would not rule out a counter-bid, saying other big US players operating in the sector, including Oracle, Amdocs and Converse, could be interested.

CSG claimed the merger would create "a leading provider of business support systems solutions serving the worldwide communications industry".

Peter Kalan, the president and chief executive of CSG Systems, said: "The communications industry is dramatically changing. Consumers have more choices for content, devices and providers. This has created an opportunity for service providers to differentiate their offerings by being more flexible and responsive to the end consumers."

Andrew Taylor, chief executive of Intec, said it was a "major event" in the business software services market. He added: "Given the increasingly difficult market conditions, and the importance of scale and relevancy to our customers, this combination represents a good deal for Intec."

In March, Intec revealed it was struggling, admitting it had been hit by deferrals as customers tightened their belt. This culminated in the loss of a "major non-traditional customer," which terminated a contract in August. The exposure to Intec's 2010 profits could be up to £4.1m, it said.

The trading update prompted several analysts to downgrade their full year expectations for profits.

Voices
voicesMoyes' tragedy is one the Deputy PM understands all too well, says Matthew Norman
Arts & Entertainment
William Shakespeare's influence on English culture is still strongly felt today, from his plays on stage to words we use everyday
arts
News
Matthew Mcnulty and Jessica Brown Findlay in 'Jamaica Inn'
mediaHundreds complain over dialogue levels in period drama
Arts & Entertainment
Rocker of ages: Chuck Berry
musicWhy do musicians play into old age?
VIDEO
Arts & Entertainment
With Jo Joyner in 'Trying Again'
tvHe talks to Alice Jones on swapping politics for pillow talk
News
Jilly's jewels: gardener Alan Titchmarsh
peopleCountry Life magazine's list of 'gallant' public figures throws light on what it means to be a gentleman in the modern world
Sport
John Terry goes down injured in the 70th minute
sportAtletico Madrid 0 Chelsea 0: Blues can finish the job at Stamford Bridge, but injuries to Terry and Cech are a concern for Mourinho
Student
student
News
<b>Rebecca Adlington</b>
<br />This, the first British swimmer to win two
Olympic gold medals in 100 years, is the eversmiling
face of the athletes who will, we're
confident, make us all proud at London 2012
peopleRebecca Adlington on 'nose surgery'
Arts & Entertainment
tvJudge for yourself
Life & Style
tech
News
Tough call: is the psychological distress Trott is suffering an illness? (Getty)
healthJonathan Trott and the problems of describing mental illness
Life & Style
23 April 2014: Google marks St George's Day with a drawing depicting England's patron saint slaying a fire-breathing dragon
tech
Life & Style
On the dogwalk: a poodle on the runway during a Mulberry show in London
fashionThe duo behind Asos and Achica have launched a new venture offering haute couture to help make furry companions fashionable
News
peopleEmma Appleton says photographer said he would shoot her for magazine if she slept with him
Extras
indybest
News
peopleRevealed: Goop.com's losses - and the pay rises
Have you tried new the Independent Digital Edition iPad app?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Director of Consulting - Energy Trading Gas, Power - London

£90000 - £110000 per annum + full Package: Harrington Starr: Director of Cons...

Automation Test Manager (C#, C++, VB.NET, QTP, Management)

Negotiable: Harrington Starr: Automation Test Manager (C#, C++, VB.NET, QTP, M...

Data Quality Analyst (SQL, Excel, Word, Finance, Access)

£20000 - £26000 per annum + benefits+bonus+package: Harrington Starr: Data Qua...

Graduate Developer/QA - (Java, C++, SQL)

£25000 - £32000 per annum: Harrington Starr: Graduate Developer/QA - (Java, C+...

Day In a Page

Brits who migrate to Costa del Sol more unhappy than those who stay at home

It's not always fun in the sun: Moving abroad does not guarantee happiness

Brits who migrate to Costa del Sol more unhappy than those who stay at home
Migrants in Britain a decade on: They came, they worked, they stayed in Lincolnshire

Migrants in Britain a decade on

They came, they worked, they stayed in Lincolnshire
Chris Addison on swapping politics for pillow talk

Chris Addison on swapping politics for pillow talk

The 'Thick of It' favourite thinks the romcom is an 'awful genre'. So why is he happy with a starring role in Sky Living's new Lake District-set series 'Trying Again'?
Why musicians play into their old age

Why musicians play into their old age

Nick Hasted looks at how they are driven by a burning desire to keep on entertaining fans despite risking ridicule
How can you tell a gentleman?

How can you tell a gentleman?

A list of public figures with gallant attributes by Country Life magazine throws a fascinating light on what it means to be a gentleman in the modern world
Pet a porter: posh pet pampering

Pet a porter: posh pet pampering

The duo behind Asos and Achica have launched a new venture offering haute couture to help make furry companions fashionable
A History of the First World War in 100 moments: The mutiny that sent a ripple of fear through the Empire

A History of the First World War in 100 moments

The mutiny that sent a ripple of fear through the Empire
Hot stuff: 10 best kettles

Hot stuff: 10 best kettles

Celebrate St George’s Day with a nice cup of tea. Now you just need to get the water boiled
Sam Wallace: Why Giggs is perfect fit as Manchester United boss... in the longer term

Sam Wallace

Why Ryan Giggs is perfect fit as Manchester United boss... in the longer term
Renaud Lavillenie: The sky's the limit for this pole vaulter's ambitions

Renaud Lavillenie: The sky's the limit for this pole vaulter's ambitions

Having smashed Sergei Bubka's 21-year-old record, the French phenomenon tells Simon Turnbull he can go higher
Through the screen: British Pathé opens its archives

Through the screen

British Pathé opens its archives
The man behind the papier mâché mask

Frank Sidebottom

The man behind the papier mâché mask
Chris Marker: Mystic film-maker with a Midas touch

Mystic film-maker with a Midas touch

Chris Marker retrospective is a revelation
Boston runs again: Thousands take to the streets for marathon as city honours dead and injured of last year's bombing

Boston runs again

Thousands of runners take to the streets as city honours dead of last year
40 years of fostering and still holding the babies (and with no plans to retire)

40 years of fostering and holding the babies

In their seventies and still working as specialist foster parents