- Qvantel will acquire all Optiva shares and cancel $108.6 million debt
- The merger will create a 1,000-strong global team with 70+ CSP clients
What happened: The deal combines Nordic and Canadian in new AI-driven monetisation tools
Optiva, based in Toronto, Canada, has agreed to merge with Finland’s Qvantel, a major player in digital business support systems (BSS). Qvantel will acquire all Optiva shares at US$0.25 each and cancel US$108.6 million in senior secured notes. The deal involves cash, new notes, equity and warrants.
The combined group will offer full-stack, AI-enabled BSS for communication service providers (CSPs). It will serve over 70 CSPs in more than 40 countries, supported by a team of more than 1,000 professionals across 30+ locations. Both firms are trusted by Tier 1–3 operators and MVNOs.
The deal covers both equity and debt components:
- Each Optiva shareholder will receive US $0.25 per share in cash. Optiva holds approximately US $108.6 million in 9.75% senior secured PIK toggle notes, which are to be cancelled.
- Voting shares of Qvantel at a conversion rate of 102.236 Qvantel shares per US $1,000 of PIK notes. That amounts to roughly 22.4% of Qvantel’s post-closing shares. Senior secured notes issued by Qvantel, totalling about US $25 million (subject to adjustments).
- Warrants to buy additional Qvantel shares equal to 3% of the outstanding shares after closing.
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Why it’s important
Telecom providers are under increasing pressure to update aging infrastructure. AI-based BSS platforms can accelerate time to market, provide personalised offers and drive new revenue streams. The combination combines Qvantel’s digital know-how with Optiva’s cloud-native charging and artificial intelligence functionalities. That provides a robust alternative to legacy vendors at a time when CSPs are looking for agile solutions for 5G and IoT service.
The deal structure also stabilises Optiva’s balance sheet. By cancelling debt and exchanging it for equity and warrants, Qvantel is reducing financial risk while gaining strategic assets.
Major shareholders, representing 67% of shares and 83.5% of notes, have signed voting support agreements. This support enhances the chances of approval from regulators and shareholders in Canada.
The deal is indicative of a broader telecom software trend in which AI is driving new revenue models and accelerating digital transformation.
