Israeli Billing Firm Mind C.T.I. Agrees to $25.4M Acquisition by Enghouse

Israeli billing software provider Mind C.T.I. has agreed to be acquired by Canadian software company Enghouse Systems for $25.4 million in cash, representing a 49% premium over its previous Nasdaq closing price. The deal values Mind C.T.I. at $1.30 per share.

Founded and led by Monika Yanko, Mind C.T.I. provides billing and customer service software solutions for telecommunications companies. Traded on Nasdaq since 2000, the company operates offices in Israel, Romania, Germany, and the United States. Enghouse Systems, traded on the Toronto Stock Exchange with a market capitalization of approximately CAD 1 billion, agreed to acquire Mind as a wholly-owned subsidiary.

Both company boards unanimously approved the transaction, which remains subject to shareholder approval and is expected to close in the first quarter of 2027. Yanko, the company's largest shareholder with a 15.5% stake, has committed to supporting the agreement. Under the terms of the agreement, Mind is permitted to solicit alternative acquisition proposals until December 10 with the assistance of financial advisors, subject to a termination fee.

Monika Yanko stated that the board believes the transaction serves the best interests of shareholders. Given the company's scale and the rising costs of maintaining public status, remaining a public company offers limited utility, according to leadership. Simultaneously, Mind appointed Orly Sorokin as its new Chief Executive Officer. Sorokin brings executive experience from IBM and recent senior roles at Mind C.T.I., while Yanko will remain as chairperson of the board.

For the first three quarters of the year, Mind reported a 3.5% revenue decrease to $14.1 million, transitioning from a net profit to a net loss of $1.2 million. During the same period, the company generated $1.4 million in operating cash flow and held $13.7 million in cash reserves.