Symphony Service Corp.and Teleca announced that they have entered into a definitive merger agreement to create Symphony Teleca Corporation, the first company exclusively focused on helping clients rapidly develop, manage and support software for emerging cloud and enterprise mobility solutions in the connected world. The transaction, which is approved by the boards of directors of both companies, will build upon the complementary strengths of each company to create a truly global leader in the transformation of software, connected devices and enterprise mobility.  

The primary drivers of the combination are the growing influence of mobility and the cloud on software and software-enabled product development, and the rising adoption and enormous market opportunity of enterprise mobility. Symphony Teleca Corporation’s increased scale, scope and global capabilities enhances its long-term value for customers, employees and investors. 

“This union is about a strategic fit between two experienced and well-respected global companies that together will continue to serve existing customers and new organizations as the clear services partner of choice for those in the business of making or using software and software-enabled products in the connected world,” said Dhawan. “Symphony Teleca is global in scale, has clear leadership in the areas that will define next-generation cloud and connected software applications, boasts one of the largest R&D capabilities focused on enterprise software and mobility, and employs one of the most experienced global services teams in the industry.”

“The strategy driving this merger is compelling,” said Dr. Romesh Wadhwani, Founder, Chairman and Chief Executive Officer, Symphony Technology Group. “Enterprise software, cloud and mobile technologies are at the beginning of a significant convergence and transformation, changing the way products are built, commercialized and operated across service-provider networks, enterprise networks and an array of personal devices.  This presents extraordinary opportunities for our combined company to accelerate its growth and creates a formidable industry competitor with the most comprehensive solution portfolio available.”

This is a time of dynamic change, increased complexity and explosive growth within the market for enterprise software and enterprise mobility. According to a report from Gartner, Inc., worldwide enterprise software revenue was expected to surpass $267 billion in 2011, a 9.5 percent increase from 2010 revenue of $244 billion; and the firm projects continued growth in 2012, with revenue forecast to reach $288 billion.1

Central to this rapid transformation of the enterprise software market is enterprise mobility. IDC predicts that by 2015 the world’s mobile worker population will reach 1.3 billion, representing 37.2 percent of the total workforce.2  IDC earlier predicted that the market for mobile applications would continue to accelerate, as the number of downloaded apps was expected to increase from 10.7 billion worldwide in 2010 to 182.7 billion in 2015.3 Currently Salesforce.com’s AppExchange alone has hundreds of different apps, and from March 2010 to September 2011 there was a 263 percent growth in branded apps, with business apps as the fastest-growing section in the Apple App Store.

“Users are demanding mobile access to enterprise applications and expect an ‘app store-like’ environment for their enterprise software needs,” stated Stephen Drake, vice president, mobility and telecommunications, IDC.  “Additionally, CIOs and corporate IT organizations are being forced to bridge the gap between consumer and corporate mobile computing and must find ways to support, secure and manage a myriad of mobile and connected devices, platforms and formats.  There is clearly a market need for service providers, such as Symphony Teleca, to develop and manage the next-generation of enterprise mobility solutions and connected devices.”

Ramanan Raghavendran, managing director, TH Lee Putnam Ventures and Board of Directors member, Symphony Services, said: “As consumer devices continue to make their way onto corporate networks, combined with a growing list of in-house and web-based applications, substantial new requirements have emerged to effectively support mobility services.  Enterprises will place significant value on a partner who can assist with the selection of solution components, systems integration and the ongoing management of mobility services.  Symphony Teleca’s ability to enable software-as-a-service and mobility is highly relevant in today’s market, and this merger is particularly well-timed.”