NICE, France--Redknee has set itself the ambitious target of becoming a "billion dollar software company" in the coming years and plans to achieve this goal partly through further acquisitions and partly through expansion into non-telco markets.
Fresh out of a two-year integration phase following its 2013 acquisition of the business support systems (BSS) unit of the former Nokia Siemens Networks, the Canada-based monetisation software specialist is now implementing its strategy for growth.
Considering its annual revenue was around the $260 million (€230 million) mark in its last full fiscal year, Redknee knows it cannot rely purely on organic growth to achieve its revenue objectives. Indeed, the acquisition of the NSN unit alone boosted revenue from around $60 million in 2012.
In an interview with FierceWireless:Europe at TM Forum Live, here, the company's vice president of marketing, Chris Newton-Smith, outlined its expansion plans.
A core strategy is to address non-telco markets, beginning with the energy sector. Here, the company sees opportunities in areas such as prepaid energy, which is "very hot" in developing markets, Newton-Smith said.
Other sectors of interest include retail, transportation and more. In essence, the company hopes to position itself as a provider of real-time monetisation platforms for the Internet of Things (IoT), serving multiple vertical sectors as they seek to translate new connected services into cash.
Newton-Smith noted that the company's current business focus--helping telecoms operators to make money from the services they deliver--still accounts for more than 90 per cent of its revenue. In future, however, revenue could be equally balanced between telco and non-telco businesses.
In terms of M&A, "we would be open to any potential transaction", Newton-Smith said, noting that the company is well positioned to support further acquisitions as a listed company.
Redknee's biggest markets are currently Europe, the Middle East and Africa, followed by Asia-Pacific. The Americas is its smallest, but fastest-growing market right now, Newton-Smith added.
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