Arantech to expand on US$10m investment

18 May 2005

Dublin-based provider of end-to-end customer experience management (CEM) software for mobile operators Arantech is to expand its presence in the North American and Asia-Pacific markets on the heels of securing US$10m in second-round equity funding.

Advised by Ion Equity, Arantech’s key investors include Trident Capital, Ericsson, Cross Atlantic Capital Partners, Oyster Investment and Enterprise Ireland.

Industry analysts have reacted positively to the company’s growth plans, viewing it as a positive advanced in CEM and the evolution of standards.

Brendan McDonagh, CEO of Arantech, said: “Our recent funding provides for a broader customer reach and an expanded global footprint which will enable us to solidify our position as the world leader in CEM software solutions and standards. Our vision is to be the de facto standard solution for operators worldwide to use customer experience to drive revenue growth and market differentiation.”

As part of the expansion, Arantech have appointed Irish IT industry veteran Cathal McGloin, founder and former CEO of Performix Technologies, as vice-president for North America.

Arantech also plans to grow its presence in Asia Pacific, having set up an office in Hong Kong in December 2004, to drive new business development and margin growth. The office is headed by Kervin Go, who has worked in the telecommunications industry for the past 12 years in Asia Pacific and Japan.

Arantech’s product suite — AranAssure — is the only solution for wireless operators that addresses the entire customer experience management process to the level of the individual customer, corporate, service or location. AranAssure uses real-time data transaction flows and aggregation and modelling techniques for detailed and ranked analysis that guarantees measurable customer revenue growth and recommends optimal customer experience configurations that speed adoption of data services over any network and device.

One of Arantech’s operator customers with over a million GSM subscribers and almost a million GPRS subscribers, gained significant value in just 12 months using AranAssure, increasing revenue by US$12m (US$6.6m in data services and US$5.4m in voice revenue and SMS). The operator’s average revenue per user increased by US$6.3 per customer as a direct result of using AranAssure with return on investment reaching 450pc in just one year.

Commenting on his company’s decision to invest in Arantech, Woody Marshall, managing director of Trident Capital, said: “We decided to invest in Arantech because of their strong management team, tangible customer traction and world class partnerships. Arantech is well positioned to be the leader of the growing Customer Experience Management category. Arantech is one of the most impressive companies that we have encountered and has demonstrated their leadership in terms of innovation, product engineering and international expansion.”

By John Kennedy