Ryder's products: Analysis, SplitBill and Dynamic Reports are provided to blue-chip mobile phone service providers, including Vodafone, Orange, T-Mobile, Verizon, Eircom and Opal Telecoms in six countries across Europe. They provide business users the capability to manage their mobile and broadband services with the benefit of considerable cost savings to business users and service providers as well as increased customer retention for the latter. Ryder's products are provided as hosted, licensed and managed solutions with a recurring license business model. Since addressing this market in 2000, Ryder Systems has experienced annual revenue growth rates of greater than 20%. European legislation requiring businesses to accurately differentiate personal and business mobile use for tax purposes ensures a compelling business case to incorporate Ryder solutions in every enterprise business workflow. Ryder Systems' products are used by over 10,000 enterprises including most of the Times 100.
"This is a compelling strategic transaction that we expect will provide significant synergies between both companies and affords growth opportunities for our customers and shareholders," said John Birbeck, CTI Group's chairman, president and chief executive officer. "Our SmartBill electronic bill management systems are successful in the USA in the wireline market, whilst Ryder's products are thriving in Europe in the mobile phone market. By integrating our operations and migrating both products to the new markets with the same resources, we have the opportunity to leverage the maximum from both markets. CTI Group's VoIP applications for both IP Centrex and end user systems will also gain new market opportunities as VoIP and mobile services merge.
We expect the addition of Ryder to CTI Group will enable us to become a world leader in electronic and on-line bill presentment and analysis in the business telecoms market. We believe these markets will continue to grow with the introduction of more VoIP and media content in mobile services to enterprises, making it essential to manage and optimize these disparate communications systems and networks.
"As we execute this acquisition we intend to maintain the momentum to create innovative products and penetrate new markets to achieve our growth objectives. We expect these initiatives combined with the transaction will position CTI Group for sustained value creation.”
"CTI Group shares our goal to dominate the telecommunications business electronic bill management market," said Andrew Wilson, VP Sales and Marketing for Ryder Systems. "Our combined strength in this market in addition to CTI's new developments in the expanding VoIP applications market allows us to enhance our offerings to our global service provider customer base," concluded Mr. Wilson.