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Comverse Technology Inc. (Nasdaq: CMVT) has been sharing financial information with prospective parties in recent weeks, including major global technology companies, in an attempt to sell its telecom billing unit, "Reuters" reports. The report adds that the software developer has received buying interest in its Comverse Network Systems unit.
Goldman Sachs is reportedly advising Comverse on its strategic options and Rothschild ROT.UL is advising the board of directors. Both Goldman Sachs and Rothschild declined to comment on the report.
The attempt to sell its billing unit comes two months after Comverse relisted on Nasdaq and drew a line under the backdating of stock options scandal, which has plagued the company for nearly six years. Comverse's founder and former CEO Kobi Alexander currently lives in Namibia in an attempt to evade US federal charges related to the affair.
"Reuters" cites Hedge fund Cadian Capital Management LLC, which has a 4.18% stake in Comverse Technology, and which said in a regulatory filing last month that the unit alone could be worth more than $2 billion. The billing unit reported $182 million in revenue, accounting for nearly half of Comverse Technology's overall revenues for the quarter ending July 31.
The report observes that Amdocs Ltd. (NYSE: DOX) and Oracle have shown previous interest in Comverse's billing unit but did not follow through due to the company's backdating problems.
Comverse's share price rose 1.54% yesterday on Nasdaq to $6.60, giving a market cap of $1.35 billion.
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