Tangoe, Inc. Combines with Information Strategies Group (ISG)
Leader in telecom expense management continues expansion in response to market growth; transaction financing led by Investor Growth Capital (IGC)
ORANGE, Conn., Aug 5, 2008 - Tangoe, Inc., a leading global provider of enterprise communications lifecycle management software and technology-enabled services, today announced that it has completed a transaction with Information Strategies Group, Inc. (ISG), a Parsippany, New Jersey-based provider of telecommunications and IT expense processing services and technologies. ISG will operate as a division of Tangoe. With the addition of ISG, Tangoe provides technology-based software and service solutions that enable global organizations to manage and control communications and IT technology resources and related expenditures, significantly reducing their costs. The transaction was completed on July 28, 2008.
Tangoe now has approximately 300 clients utilizing the company's technologies and technology-enabled services to better manage the entire lifecycle of their fixed, mobile, and network communications.
Operational integration of the two companies is underway led by Tangoe founder, President and CEO Al Subbloie. Former ISG managing directors George Germano and Brian Leigh will continue their involvement in the newly formed division of Tangoe as senior vice president of billing solutions and senior vice president of business development. All current Tangoe and ISG locations will remain in full operation in support of the new organization.
ISG's call accounting product and billing chargeback and allocations software and services practice further extend the depth and breadth of Tangoe's established software and technology-enabled managed services. The exceptional management expertise in billing and processes that ISG has developed over the past decade, as well as their experience in international and domestic communications cost processing, further enhances Tangoe's award-winning CommCare managed services offerings. As a result of the combination, ISG's existing client base of IT and telecom invoice processing customers will also gain access to Tangoe's suite of wireless lifecycle management solutions while retaining their current solutions supported by current account management and support teams. The combination of Tangoe and ISG presents new telecom lifecycle management solution opportunities to the marketplace and further establishes Tangoe as a leader in the technology enabled managed services/communications lifecycle management market.
"With this transaction, Tangoe has enhanced its position as a premier provider of technology-based TEM solutions and services," said Al Subbloie. "The synergies between Tangoe and ISG are such that combining forces was a natural fit. Blending our expertise and product capabilities will enable us to extend those capabilities to new and growing markets. The expanded company's deep knowledge and expertise in global communications, IT billing, invoice processing, billing chargebacks, inventory management, and provisioning will help us provide even greater services and solutions to our clients."
The transaction funding was led by Investor Growth Capital Limited (IGC), a wholly owned venture capital arm of Investor AB, the largest listed industrial holding company in the Nordic region. IGC joins other major Tangoe investors which include Edison Venture Funds, Sevin Rosen Funds, North Atlantic Capital, and Axiom Venture Funds. In conjunction with the financing, Noah Walley from IGC has been appointed to Tangoe's Board of Directors. "We are very pleased to add IGC to Tangoe's already strong board and investor base" said Al Subbloie. "We were attracted by their long track record of creating sector-leading companies as well as their patient-capital approach. As we look to strengthen our presence outside of North America we believe their presence on the ground in Europe and Asia as well as their wider global network will be of tremendous assistance."
The transaction was also supported by ORIX Venture Finance, a subsidiary of ORIX Finance, a multi-billion dollar finance organization. ORIX Venture Finance is a leading provider of debt financing to venture-backed companies. "At ORIX, we look to support growing companies backed by strong, experienced management teams and knowledgeable sponsors. Tangoe has all of these aspects in place that will help the company continue on its path as a leader in telecom expense management. We were delighted to move quickly alongside IGC to support this acquisition", said William D. Bishop of ORIX Venture Finance.
Tangoe, Inc., a global leader in telecommunications lifecycle solutions, provides software and technology-driven services that enable global organizations to procure, manage, and control their fixed, mobile, and converged communications assets and their costs. Tangoe's software and service solutions are built upon patented technologies that enable dramatic cost reductions and process efficiencies, which significantly contribute to organizational profitability. Global 2000 organizations worldwide depend on Tangoe solutions to more effectively manage their telecommunications processes. In 2007, Tangoe was named No. 149 on the Entrepreneur Hot 500 ranking of America's fastest growing companies and was named the fifth fastest growing Connecticut technology company in the Deloitte Technology Fast 50. Tangoe has offices in Connecticut, Texas, New York and New Jersey. Tangoe provides solutions in the United States through direct and partner sales channels, and internationally through a global network of certified business partners.
Tangoe is a registered trademark and CommCare is a trademark of Tangoe, Inc.
About Investor Growth Capital
Investor Growth Capital (IGC) is the wholly-owned venture capital arm of Investor AB, the largest listed industrial holding company in the Nordic region. IGC was formed in the mid-1990s to invest in high-quality, growth-oriented companies, primarily in the IT and Healthcare industries. Today its 30 investment professionals are developing a portfolio whose value exceeds $800 million from offices located in New York, Menlo Park, Stockholm, Hong Kong, Tokyo and Beijing. Investor AB is a leading shareholder in a number of European multinational corporations, including ABB, Astra Zeneca, Atlas Copco, Electrolux, Ericsson and SEB. For almost a century Investor AB's business philosophy has been to build best-in-class companies in sectors where the group has strong knowledge and a networking advantage. IGC shares that approach and benefits from Investor AB's extensive global network of companies and senior managers. To learn more visit http://www.investorgrowthcapital.com.
About ORIX Venture Finance
ORIX Venture Finance provides enterprise financing to mid- and late-stage venture capital-backed companies via acquisition financing, expansion capital, working capital term loans and credit lines, and equity co-investments. The Venture Finance team, staffed with highly seasoned venture lending professionals, meets the challenges facing growth companies by structuring flexible financing packages ranging from $5 MM to $50 MM that meet growing companies' unique needs. We are a stable and reliable finance company dedicated to supporting the growth and success of professionally backed companies with a range of debt products. For more information, visit www.orixventurefinance.com.
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