TEOCO Secures $60 Million from TA Associates
Date: Wednesday , December 30, 2009
Atul Jain founded TEOCO (The Employee Owned Company) has raised $60 million from TA Associates, a private equity firm. TEOCO is a provider of network cost optimization solutions to communications service providers worldwide.
"We see this as the beginning of a new phase in TEOCO's history, where we look to add even greater value to communications service providers worldwide," says Jain. According to the company, it provides cost management offerings, which include cost auditing, invoice automation, payables processing and claims management. Its routing management solutions help to reduce network operating costs through optimal call routing and real-time traffic management, while its revenue management offerings allow service providers to identify revenue leakage and detect fraudulent behavior.
"Venture capitalists come into a company like TEOCO not because they need the money, but because they donít. They provide liquidity and growth capital," asserts Jain. TEOCO generates a good amount of cash every year itself and has used that cash to make a couple of acquisition in the last few years - Vibrant Solutions in October 2006 and Vero Systems in October 2008. "Now we will be a little more aggressive in the frequency or perhaps size of acquisition we do. This improves our ability to do a bigger deal," adds Jain.
Headquartered in Fairfax, Virginia, TEOCO has offices in the U.S, UK and India. With an employ base of 250, the company serves more than 50 North American and international wireless, wireline, wholesale and cable service providers.
TEOCO plans to be little more disciplined in the investment of raised fund, which can help the company to grow its international footprint. The future of TEOCO looks more bright as Dan Baker, Research Director at Technology Research Institute (TRI) says that the revenue assurance market is expected to grow at a compound annual growth rate of six percent to reach $2.23 billion by 2013.