Lumine Group | Telepin Acquisition Case Study

Why Sell?

Telepin had goals to expand its customer base and product offerings and began looking for an acquirer that could accelerate this growth.

Why Lumine?

With Lumine’s buy and hold forever acquisition philosophy, Telepin felt confident knowing their asset would never be resold to a competitor.
Lumine’s decentralized business model would allow Telepin to continue operating as an autonomous unit.
Lumine could provide access to capital for strategic initiatives and acquisitions that aligned with Telepin’s goals.

Background

Founded in 2006 in Ottawa, Telepin Software is a leading provider of mobile transaction infrastructure software to mobile operators. In its early stages, Telepin focused chiefly on developing electronic voucher distribution software, securing contracts with global operators such as Sprint, Claro Chile, WIND Mobile and Etisalat Egypt.

After two years of successful growth, Vince Kadar joined Telepin’s leadership team as CEO to assist with the commercialization of the business. Around this same time, the business was repositioned to target mobile telecom operators in the Mobile Financial Services market. Entering into the nascent Mobile Financial Services market was a particularly unique opportunity as there were no clear competitors, direction, or standardization bodies to interfere with innovation. In 2009, Telepin acquired their first customer in the space and have gone on to become clear leaders in the industry ever since.
Eager to continue growing the business further, Vince decided to explore acquisition opportunities in 2016. After researching a variety of different acquirers, he landed on Constellation Software. Intrigued by Constellation’s buy-and-hold forever acquisition philosophy, Vince made contact with Mark Leonard, President and Chairman of the board at Constellation Software Inc. Shortly thereafter, Mark put Vince in touch with the Mergers & Acquisitions team at Lumine Group as they had an established presence in the Communications market.

Joining Lumine

After connecting with David Nyland, President of Communications and Media at Lumine Group, Vince immediately identified Telepin to be a great fit within the existing portfolio of communications businesses. Telepin would bring a new Mobile Financial Services solution set to the portfolio, as well as geographic expansion into Africa, South East Asia, and Latin America. Vince and the rest of the Shareholders at Telepin were compelled by Lumine’s decentralized business model, as it would allow the company to continue innovating as an independent software provider. Moreover, with access to capital for strategic initiatives and acquisitions, the shareholders felt confident that Lumine would propel Telepin into its next era of growth.

3 Reasons Telepin Chose Lumine

Buy and Hold Forever

As a “buy and hold forever” acquirer, Lumine would never resell the business to a competitor. Telepin was intrigued by Lumine’s strengthen and grow philosophy to ensure the growth of his business.

Autonomy

Vince and the rest of Shareholders at Telepin were compelled by Lumine’s decentralized business model, as it would allow the company to continue innovating as an independent software provider

With Scale Comes Opportunity

Lumine is part of a multi-billion dollar, consistently performing, profitable, and stable global public company. With access to capital for strategic initiatives and acquisitions, the shareholders felt confident that Lumine would propel Telepin into its next era of growth.

Life Post-Acquisition

In early 2017, Telepin decided to join Lumine Group. With a strong financial track record behind them, Telepin is ready to take on new challenges and become even stronger with the backing of their new parent. Vince looks forward to collaborating with leaders and exchanging best practices inside the Lumine Group portfolio of companies.

Telepin was acquired by Lumine Group in 2017.

This case study was originally published in 2017.

Telepin Acquisition Case Study