CSGS To Purchase Intec For $370.9 Million

CSG Systems International Inc CSGS has signed an agreement to purchase British rival Intec Telecom Systems Plc for 236.7 million pounds ($370.9 million). CSGS will buy Intec for 72 pence per share, representing a 30% premium to its closing price on July 23. Through this deal, CSGS wants to create a worldwide presence in business support systems. Analysts at Numis considered this as a good deal, at least for CSG shareholders. They said, "While shareholders are likely to welcome an offer, the price feels very low to us." They added that, "There is only one significant irrevocable and we therefore see a reasonable chance of an industry counterbidder and a higher price." Analyst Jon Fletcher said, "The offer makes strategic sense combining the businesses to create the second largest BSS provider." CSGS shares lost 0.19% to close at $20.97 yesterday, while shares of Intec are up about 32% in London. Read more from Benzinga's Company news.