Tekelec buys Dutch company for $39.5 million

MORRISVILLE -- Software maker Tekelec announced this morning it bought a Dutch company that makes telecommunications software to enable text messaging.

Tekelec paid $39.5 million for mBalance, a seven-year-old company with 82 employees and products deployed in 38 countries.

Tekelec has boosted sales in the past year, in large part due to increased needs of telecom companies that have experienced a surge in text messaging. Tekelec makes software and equipment for major telecom companies like AT&T, Verizon and T-Mobile. The company employs about 1,000 people worldwide, including about 675 in Morrisville.

Tekelec has been integrating mBalance products as part of Tekelec's technology in nine countries.

"This acquisition demonstrates the company's commitment to grow our solutions portfolio and market opportunity," said Tekelec CEO Frank Plastina in a prepared statement.

Text messages have soared since wireless carriers introduced flat-rate plans with unlimited calling and texting time. The continued growth of text messaging is expected to strain the network capacity of major carriers.

Tekelec's stock fell 12 cents in early trading to $12.37. The shares are up nearly 2 percent in the past year.