Orange telecommunications software and services vendor Tangoe Inc. has acquired privately held ProfitLine Inc., a San Diego maker of telecom expense and management software, for $23.5 million.
Publicly traded Tangoe paid $14.5 million cash at Monday’s deal closing. Additional cash payments of $4.5 million each will follow on the first anniversary of the closing and six months after that, authorities say.
Tangoe says ProfitLine will contribute about $400,000 in revenues during the fourth quarter but its impact on the new owner’s bottom line will be immaterial, the company said.
For the full year, ProfitLine will add between $14 million and $15 million in revenues with an accretive contribution to Tangoe’s overall profitability.
Tangoe, one of Marcum LLP’s top 40 fastest-growing Connecticut technology firms for 2011, provides what is known in the industry as communications lifecycle software that customers use to optimize buying or retiring cell phones and other mobile communications devices.
ProfitLine’s specialty is software that tracks clients’ usage, carriers and rates for fixed and mobile communications devices. Its private-sector clients include those in the retail, financial services, health care, automotive, energy/utilities, manufacturing, technology industries, as well as ones in the government sector.
Tangoe CEO Al Subloie said the ProfitLine purchase expands its own customer base with cross-sell opportunities for its software and services.
