The Official Journal of the European Union has published the final position of the European Commision in relation to the case of concentration between Syniverse and BSG group by way of purchase of shares.

Background

On 5 June 2007, the Commission received a notification of a proposed concentration pursuant to Article 4 and following a referral pursuant to Article 4(5) of Regulation (EC) No 139/2004 by which the undertaking Syniverse  Technologies, Inc. (‘Syniverse’, USA) acquire(s) within the meaning of Article 3(1)(b) of the Council Regulation control of the wireless business of Billing Services Group Limited (‘BSG Target Business’, Bermuda) by way of purchase of shares.

The Commission concludes in the draft Decision that the proposed concentration will not give raise to any competition concerns as a result of which effective competition would be significantly impeded in the Common Market or in a substantial part of it. Consequently, the Commission intends to declare the concentration compatible with the Common Market and the EEA Agreement, in accordance with Article 8 of the Merger Regulation and Article 57 of the EEA Agreement.

Bodies undertaking

• Syniverse Technologies, Inc. (NYSE:SVR) is a wholly owned subsidiary of Syniverse Holdings, Inc. Syniverse is a global provider of technology services to wireless telecommunications companies. Syniverse's customers are based in more than 50 countries all over the world. Syniverse is a leading provider of mission-critical technology services to wireless telecommunications companies worldwide. Syniverse solutions simplify technology complexities by integrating disparate carriers' systems and networks in order to provide seamless global voice and data communications to wireless subscribers. Carriers depend on Syniverse's integrated suite of services to solve their most complex technology challenges and to facilitate the rapid deployment of next generation wireless services. Syniverse provides services to over 350 telecommunications carriers in more than 50 countries, including the ten largest U.S. wireless carriers and six of the ten largest international wireless carriers. Headquartered in Tampa, Fla., U.S.A., Syniverse has offices in major cities throughout North America, The Netherlands, China, the United Kingdom and a global sales force in Brazil, France, India, Italy, Japan, Luxembourg, Norway, Singapore and Slovakia.

• Business Systems Group Holdings plc (LON:BSG) (BSG Group) is a global provider of payment processing, data clearing, financial settlement and risk management solutions for fixed-line (wireline), wireless and Wi-Fi communication service providers. The BSG Group operates two businesses, namely a wireless business and a wirelinebusiness. The proposed transaction only concerns the wireless business (the wireless business hereinafter: ‘BSG’).

Market situation pre and post merger.

Acording to the studies of the EC in worldwide market Mach would have an estimated [50-60] % market share and in the EEA [55-65] %. For Syniverse the corresponding market shares are estimated at [15-25] % and [10-20] %, for BSG [10-20] % and [30-40] %, EDCH [0-10] % (worldwide) and VeriSign [0-10] % (worldwide).

Post merger, in a worldwide market, Mach would also remain the clear market leader [50-60] %, the combination of Syniverse and BSG (currently the second and third players respectively) would become the second player in the market [30-40] %. With respect to an EEA-wide market, Mach would still be the market leader in data clearing with a market share of [55-65] %. The combination of BSG & Syniverse (currently number two and three in the market) would come closer with a combined share of [35-45] %. The concentration would therefore reduce the number of competitors from three to two in an EEA-wide market.

What do the Directorate-General for Competition do?

The mission of the Directorate General for Competition is to enforce the competition rules of the Community Treaties, in order to ensure that competition in the EU market is not distorted and that markets operate as efficiently as possible, thereby contributing to the welfare of consumers and to the competitiveness of the European economy.
The work of DG COMP is essential to the achievement of the EU’s strategic objectives as expressed in the “Community Lisbon Program” , because it makes a significant contribution to the efficient functioning of the internal market and promotes the conditions necessary to stimulate knowledge and innovation, to make Europe a more attractive place to invest and work, and to create more and better jobs.