NXTcomm08
Alcatel-Lucent Finds a New Broadband Motive
| Jun 19, 2008 | Broadband Infrastructure | Show Update
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Analyst: Ron Westfall
Current Perspective: Positive
Vendor Importance: Moderate/High
Market Impact: Moderate |
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Event Summary
June 17, 2008 -- Alcatel-Lucent announced a definitive agreement to acquire Motive, Inc., a provider of service management software for broadband and mobile data services, through a cash tender offer for all outstanding Motive shares at a price of $2.23 per share, representing a value of approximately $67.8 million. The purchase price of $2.23 per share represents a premium of approximately 53% over the closing price of the shares on June 16, 2008 and a premium of approximately 51% over the average closing price of the shares for the 90 days prior to June 16, 2008. The transaction is expected to close by Q4 2008.
Analytical Summary
• Current Perspective: Positive on Alcatel-Lucent acquiring Motive for almost $68 million, as the combination of Alcatel-Lucent’s market leadership in the wireline broadband sector with Motive’s market leadership in software-based broadband service automation and management tools further cements Alcatel-Lucent’s channel relationship with key top-tier telco customers and better positions the company to support ongoing carrier adoption of broadband services such as FMC and consumer triple-play service offerings.
• Vendor Importance: Moderate to high to Alcatel-Lucent, because it needed to acquire Motive to ensure Motive’s proven service management software did not slip into the hands of other access rivals, while Motive needed to tap into Alcatel-Lucent’s global channels and corporate resources to sustain its long-term competitive viability.
• Market Impact: Moderate on the IP service platform segment, as Alcatel-Lucent’s inherent market share leadership within the global wireline broadband market will compel rivals to re-assess their approach to broadband service management and support. Many rivals currently work with Motive in this area, but they now must recognize that mutual revenue gains realized via Motive software technology will benefit Alcatel-Lucent directly.
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Current Perspective
Competitive Positives and Concerns
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