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EXHIBIT 99.1
Press Release of Portal Software
Issued on November 2, 2000
Portal Software Acquires SOLUTION42
Acquisition enables Portal to expand position in
multi-billion dollar wireless voice and 3G billing markets
Cupertino, Calif. (November 3, 2000) - Portal Software, Inc. (NASDAQ: PRSF), a
leading provider of business infrastructure software for broadband, wireless
Internet, and next-generation communications services, announced today it has
acquired privately held SOLUTION42, an innovator of wireless voice mediation,
provisioning and rating technologies. This move extends Infranet, Portal's
customer management and billing platform, to include a convergent solution for
the 3G and 2.5G wireless data and voice markets.
Under the terms of the agreement, Portal Software will issue, to the
shareholders of SOLUTION42, shares in a German Portal subsidiary that may be
exchanged for up to 7.5 million shares of Portal common stock, or approximately
4% of the combined company on a fully diluted basis and includes an earn-out
which is contingent upon the retention of SOLUTION42 key executives for two
years. This transaction will be accounted for as a purchase. Portal will take a
one-time charge for purchased in-process research and development expenses and
certain acquisition costs in the fourth quarter of its 2001 fiscal year.
Additional financial details of the deal will be disclosed at Portal's third
quarter 2001 financial earnings call scheduled for November 21st. SOLUTION42
will now operate under the Portal Software name. "As the wireless industry
evolves to 2.5G and 3G technology, service providers need a new business
infrastructure that supports both current voice services, and the broad range of
value-added services and applications," said John Little, CEO of Portal
Software, Inc "SOLUTION42 extends Portal's existing wireless Internet and
services platform to provide a converged solution for the world's leading mobile
service providers."
"Our two companies are well matched, not only because of complementary
technologies, but because SOLUTION42 and Portal share a similar vision,
commitment to innovation and company culture," said Arno Schlosser, CEO of
SOLUTION42. "We're very excited to be joining Portal's team to build an even
stronger force in the rapidly evolving next generation wireless industry."
Portal Software and SOLUTION42 are highly complementary, with little overlap in
technologies or resources, and currently share two prominent European customers.
SOLUTION42 brings to Portal provisioning, mediation, extended rating (including
roaming) capabilities and local number portability for the wireless voice
market, as well as nearly 100 engineering and professional services experts.
SOLUTION42 is strategically located in the heart of Europe, widely considered a
leading center of wireless technology innovation, and has a base of customers in
fixed wireless, broadband and mobile wireless voice markets. The integrated
solution of the two companies addresses needs of customers in convergent
wireless markets, as well as customers adding circuit-switched voice
capabilities to fixed wireless and broadband offerings. The product line is
available today.
"The wireless industry is going through a revolution, presenting mobile service
providers with an opportunity to develop significant new services and revenue
streams," said Alexandre Haeffner, CEO of Global Telecom, Media & Networks, Cap
Gemini Ernst & Young. "With the integration of SOLUTION42's leading wireless
voice solution, Portal will extend its reach into the promising 2.5G and 3G
markets, giving wireless providers the opportunity to quickly roll out and
support the voice and data services of today and tomorrow. Cap Gemini Ernst &
Young strongly believes that tomorrow's billing solutions will need best-of-
breed solutions allied with strong integration capabilities."
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SOLUTION42 is based in Quickborn Germany. It was founded in October 1997, and
has been one of the fastest-growing providers of mediation, rating and
provisioning solutions for network operators and service providers. Because of
its innovative product design, the company has achieved an important market
position within in a short time, and today has more than 25 customers.
SOLUTION42 has approximately 140 employees. SOLUTION42 CEO and co-founder Arno
Schlosser, and Chief Technology Officer (CTO) and co-founder, Andrew Tan,
previously held executive positions with Talkline in Elmshorn, Germany.
About Portal Software, Inc.
Portal Software, Inc., is building business infrastructure for the Internet.
Based in Cupertino, Calif., Portal is the leading provider of customer
management and billing software for Internet and emerging, next-generation
communications services. The company's real-time solution enables service
providers to manage customers, support services and collect money. Portal's
customers include Qwest Communications, MCI WorldCom, Inktomi, Deutsche
Telekom's T-Online, Telenor Mobil AS, Sonera and France Telecom. Portal will
host a teleconference discussing the acquisition on Friday, November 3rd at
6:00am PST (9:00 a.m. EST). A web simulcast will be available at www.vcall.com.
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Statements in this release concerning Portal Software, Inc.'s future growth,
accounting charges and operating results, future results of business
combinations, future product plans and Portal's overall future prospects are
forward looking statements that involve a number of uncertainties and risks.
Factors that could cause actual events or results to differ materially include
the following: market acceptance of Portal's products and services; customer and
industry analyst perceptions of Portal and its technology vision and future
prospects; sales force productivity; challenges associated with integrating
significant increases in new personnel and geographic operations; rapid
technological changes; competitive factors; unanticipated delays in scheduled
product availability dates (which could result from various occurrences
including development or testing difficulties, software errors, shortages in
appropriately skilled software engineers and project management problems);
general business conditions, and the continued growth of the wireless
communications, Internet and Internet-based software and services markets.
