Aepona acquires Valista in all-share deal

TELECOMS NETWORK software group Aepona has acquired digital payments company Valista in an all-share transaction designed to capitalise on the growing popularity of mobile phone apps.

Belfast-based Aepona specialises in producing software for the telecoms sector, particularly the mobile phone business, that makes it easier for operators to roll out apps (additional software applications) on their networks.

These have become increasingly popular since the arrival of the iPhone, with the iTunes AppStore boasting over a billion apps downloads. Other industry players such as Nokia (OviStore), Palm (AppCAtalog) and Research In Motion (Blackberry AppWorld) are copying that formula. Users can download anything from lists of nearby restaurants to personal budgeting software.

However, Aepona spokesman Michael Crossey said customers were concerned about how to organise payment for opening their networks to these apps. “What we discovered talking to customers who were opening their networks was that the notion was appealing but that billing become an issue,” said Mr Crossey.

Valista specialises in streamlining that process for operators.

“The acquisition, which is effective immediately, creates a powerful, independent vendor . . . with a combined client list that includes some of the largest mobile and broadband operators in North America, Europe and Asia.”

No value for the deal has been disclosed.

A number of venture capital shareholders have stakes in both business, including British group Amadeus and Trinity Venture Capital. Other VC investors include Boston-based Polaris.

Both companies have recently undergone a cost-reduction programme, with Valista reducing its headcount to around 70 in the first quarter of this year and Aepona undertaking a similar process towards the end of 2008. It now employs around 120 people.

Aepona was founded as Northern Ireland subsidiary of telecommunications software company Aldiscon in 1995. Valista emerged from the deal that saw Network365 and US group iPIN join forces.

Serial entrepreneur Raomal Perera was the chief executive of Network 365 and, initially, Valista. Most of the Valista executives have been with him from his time in Isocor before Network 365. Two of them – chief technology officer Fran Heeran and Declan McMahon, the company’s senior vice-president of services – will remain with the company.