MIND CTI Ltd. is a global provider of billing and customer care solutions and messaging services for voice, data, video and content services. Headquartered in Yokneam, Israel; the company also has offices in Silver Spring, MD in the United States of America, Iaşi in Romania and Suceava in Romania, and in Germany.
History
Inception, IPO, and growth history
MIND CTI Ltd. was founded in 1995 by the company's current Chief Executive Officer Monica Iancu, née Eisinger, and Lior Salansky in Yokneam, Israel.
2000s
In August 2000 the company had an initial public offering on NASDAQ, and in 2002 the company's shares were also listed on the Tel-Aviv Stock Exchange and were included in the TA-100 Index of leading shares for a while, but in November 2009, the company delisted from the Tel-Aviv Stock Exchange () and now is listed exclusive with NASDAQ.
At the time of its initial public offering the company reported revenues of US$ 8.196 million and net income of US$1.514 million for year 1999, and had raised funding of approximately US$15 million from ADC Teledata Communications Ltd., a subsidiary of ADC Telecommunications, and a syndicate of investors including Summit Ventures. The initial public offering yielded net proceeds of US$29.9 million for the company, and in 2001 the company reported revenues of US$15.613 million, net income of US$3.748 million, and working capital of US$46.6 million as of December 31, 2000.
In 2001, the company acquired from Veramark Technologies Inc. all the rights for the VeraBill product line, a mediation, provisioning and billing solution for wireline and wireless mid-size carriers, for US$1 million.
In 2005 the company acquired Sentori Inc., a provider of customer care and billing solutions to rural wireless carriers and MVNOs, mainly in the United States, for an estimated US$ 4.426 million in cash, noting that the transaction carried a goodwill of US$ 6.966 million, intangible assets of US$1.871 million, and current liabilities of US$ 5.062 million.
In 2007, the company acquired Omni Consulting Company Limited (doing business as "Abacus Billing,") a provider of billing and customer care solutions in a service bureau mode, mainly in Europe, for an estimated US$ 5.972 million in cash (including expenses) and performance related earn-outs providing for payments through the third quarter of 2009 of up to a maximum of approximately US$ 1.5 million, noting that the transaction carried goodwill of US$3.339 million (not including goodwill from the performance related earn-outs,) intangible assets of US$ 1.577 million, and current liabilities of US$ 1.159 million.
From 2007 through 2009, the company encountered difficulties with the investment of a large part of its assets in auction rate securities, causing write-offs of significant investments from 2007 through 2009. However, these write-off were eventually offset through the settlement of an arbitration action against Credit Suisse Group AG. Aggravating the difficulties with the investments, during the 2007 through 2009 time-period, the company experienced difficulties growing, recording no net-new business in 2008.
Subsequent to the 2009 settlement agreement with Credit Suisse Group AG, the company was sued by an individual investor, purportedly in a class action securities lawsuit, relating primarily to the Company's investment in auction rate securities. The lawsuit was dismissed in July 2010.
2010s
In 2010, the company resumed its growth, securing new key wins, including wins with tier 1 operators and wins related to the deregulation and emerging MVNO market in Israel.
In 2013, the company announced that it would actively pursue acquisitions that satisfied certain criteria, including proven revenue generation, complementary technology and geography and expected accretion to earnings within two to three quarters.
As of December 31, 2013, the company had no employees in the United Kingdom.
In February 2015, the company started its second location in Romania in the city of Suceava.
In March 2019, the company acquired Message Mobile GmbH, a provider of enterprise messaging, communication and payment solutions, for a total consideration of $3 million, of which $2.25 million was paid in cash and $750,000 was paid in 345,908 Mind CTI shares. In connection with the acquisition, the Company recorded core technology, customer relationships and goodwill in an amount of approximately US$ 0.3 million, US$ 0.55 million, and US$ 2.2 million, respectively. The estimated useful life of the core technology and customer relationships was 10.75 years and 5.75 years, respectively.