M&A Deal Summary

Warburg Pincus and Providence Equity Partners Acquire Telcordia Technologies

On March 15, 2005, private equity firms Warburg Pincus and Providence Equity Partners acquired communications company Telcordia Technologies from Science Applications International for 1.4B USD

Acquisition Highlights
  • This is Warburg Pincus’ 5th and Providence Equity Partners’ 9th transaction in the Communications sector.
  • This is Warburg Pincus’ 14th and Providence Equity Partners’ 16th largest (disclosed) transaction.
  • This is Warburg Pincus’ 49th and Providence Equity Partners’ 15th transaction in the United States.
  • This is Warburg Pincus’ 1st and Providence Equity Partners’ 1st transaction in New Jersey.
Investment Fate
  • Telcordia Technologies was sold to a publicly-traded strategic buyer in 2011 for 1.2B USD.

M&A Deal Summary

Date 2005-03-15
Target Telcordia Technologies
Sector Communications
Buyer(s) Warburg Pincus
Providence Equity Partners
Sellers(s) Science Applications International
Deal Type Divestiture
Deal Value 1.4B USD

Target

Telcordia Technologies

Piscataway, New Jersey, United States
website
Telcordia Technologies, Inc. is a provider of telecommunications software and services for IP, wireline, wireless and cable. By delivering on its Elementive strategy of providing flexible, standards-based solutions that optimize complex network and business support systems, Telcordia enables customers to aggressively reduce costs and grow revenues.

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Buyer(S) 2

Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


DEAL STATS #
Overall 77 of 475
Sector (Communications) 5 of 19
Type (Divestiture) 4 of 18
State (New Jersey) 1 of 7
Country (United States) 49 of 234
Year (2005) 7 of 17
Size (of disclosed) 14 of 47
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-02-15 Velocimed

Maple Grove, Minnesota, United States

Velocimed, Inc. is a private company focused on the development of three novel cardiovascular devices.

Sell $74M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-03-29 MediaNation

Hong Kong, China

MediaNation is a provider of outdoor advertising media services in China and Hong Kong.

Sell HK$405M
Buyer

Providence Equity Partners

Providence, Rhode Island, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1989
PE ASSETS 36.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Providence Equity Partners is a specialist private equity firm that targets investments in media, entertainment, communications, and information companies. Specifically, Providence seeks investments in wireless and wireline telephony, cable television content and distribution, music, film, publishing, radio and television broadcasting, and other media and communications sectors. Providence Equity looks to commit $150 million to $800 million of equity capital in transactions ranging from growth financings and recapitalizations, to buyouts and take-privates. Providence Equity Partners was formed in 1989 and has offices in Providence, Rhode Island; New York, New York; Los Angeles, California; London, United Kingdom; Hong Kong, China; and New Delhi, India.


DEAL STATS #
Overall 25 of 133
Sector (Communications) 9 of 20
Type (Divestiture) 5 of 11
State (New Jersey) 1 of 1
Country (United States) 15 of 84
Year (2005) 1 of 7
Size (of disclosed) 16 of 34
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-12-01 Eircom

Dublin, Ireland

eircom, the Irish national incumbent fixed-line telephone company, in a take-private transaction in 2001. In 2004, eircom was listed on the London and Dublin stock exchanges.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-06 Dynata

Shelton, Connecticut, United States

Dynata is a global provider of data solutions and technology for consumer and B2B survey research. Dynata reaches participants in 90+ sample countries via internet, telephone, mobile/wireless and mixed-access offerings. Dynata is based in Shelton, Connecticut.

Buy -

Seller(S) 1

SELLER

Science Applications International

Reston, Virginia, United States

website


Category Company
Founded 1969
Sector Information Technology
Employees26,000
Revenue 7.4B USD (2022)
DESCRIPTION
SAIC office in Tysons Corner, Virginia.
SAIC office in Tysons Corner, Virginia.

SSAIC is a scientific, engineering, and technology applications company that uses its domain knowledge to solve problems in national security, energy and the environment, critical infrastructure, and health. Science Applications International was founded in 1969 and is based in Reston, Virginia.


DEAL STATS #
Overall 1 of 3
Sector (Communications) 1 of 1
Type (Divestiture) 1 of 3
State (New Jersey) 1 of 1
Country (United States) 1 of 3
Year (2005) 1 of 1
Size (of disclosed) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-11-29 ProcureNet Holdings

Fairfield, New Jersey, United States

ProcureNet Holdings, Inc. is a provides which performs electronic procurement, logistics and supply chain management services for the Department of Defense (DoD) and other federal customers.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-06 GEO-CENTERS

Newton, Massachusetts, United States

GEO-CENTERS, Inc. is an engineering and professional services firm, providing research and development for chemical and biological detection, infrastructure assessment and protection, life science research, rapid response equipment and support, and sensor systems and integration.

Buy -