Two investment firms are close to acquiring Telcordia Technologies Inc. from Science Applications International Corp. for approximately $1.3 billion, the Wall Street Journal reported Thursday, citing people familiar with the matter.
Warburg Pincus and Providence Equity Partners are negotiating an agreement to acquire Telcordia, the newspaper reported, adding a deal is expected to be announced in the next few days.
A Telcordia spokesperson declined to comment on the report.
Science Applications International Corp. confirmed in September it is seeking a buyer or another investor for Telcordia, the operations support systems company serving the biggest U.S. local phone companies and other telecommunications carriers in North America and abroad. In a Sept. 20 filing with the Securities and Exchange Commission, SAIC confirmed that in July it began seeking alternatives to sell the company or find an additional owner.
Telcordia has historically generated a majority of revenue through the local phone companies that are part of the old Bell system, but the company is seeking opportunities to grow through new products and relationships with a broader customer base, including wireless and international carriers, according to the SEC filing. SAIC purchased Telcordia, formerly Bellcore, in 1997 from the regional Bell companies.
