TEOCO, suppliers of revenue assurance and cost management solutions, has bought Vero Systems, vendors of least cost routing software. Read the press release here. The price paid by TEOCO has not been disclosed. Both TEOCO and Vero are based in the US, with TEOCO headquartered in Virginia and Vero in New Jersey.
Although the price has not been disclosed, it is possible to speculate where some of TEOCO’s funding came from. In May this year, Razorsight agreed to pay a US$4.5 settlement to TEOCO after they admitted to stealing TEOCO’s intellectual property. It is an odd coincidence that Vero have themselves been recently engaged in legal activity, after Telarix accused Vero of patent infringement.
In the midst of a credit crunch, extra cash comes in handy when trying to keep pace in the M&A race that has gripped the revenue assurance industry. Razorsight’s payout has probably given their Virginian rivals TEOCO a crucial helping hand in the contest to build scale. This purchase signals that the wider trend of consolidation will continue.