XaCCT beat HP, Narus to ally with Motorola

Also signed deal to sell platforms to Bell Canada; says deals could be worth $35m
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XaCCT today said it has signed the biggest deals in its history, to supply software platforms to Motorola (NYSE:MOT) and Bell Canada (Nasdaq:BCICF).

The precise value of the deals is debatable, as the Motorola accord will not be generating any immediate income. The company estimates that their value could potentially be worth $35 million over three to five years.

XaCCT develops infrastructure software for IP networks. The company, established in May 1997 by Eran Wagner and Limor Schweitzer, sells its N2B ¿ network to business ¿ platforms to equipment and service providers.

The deal with Motorola is based on a long-term alliance, under which the communications equipment giant will integrate the XaCCT platform in its Aspira "total communications solutions". In principle, all future mobile phone system Motorola sells will generate revenue for XaCCT.

XaCCT's sales manager in Israel and parts of Europe, Martin Almog, says the company beat two other companies win the Motorola contract ¿ none other than Hewlett Packard (NYSE:HWP) and Narus, which provides IP-based surfer usage data to phone companies.

He noted that while billing and customer-care software provider Amdocs (NYSE:DOX) has begun to compete with XaCCT in certain areas, it did not bid for the Motorola contract.

The Motorola deal will not be generating immediate income, Almog said, but it has great potential for future revenue.

Bell Canada is a key Internet service source, providing service to more than 8 million customers in 110 countries. The deal with this mammoth will make money for XaCCT right away. Revenues could grow as the Canadian provider expands its value-added applications, with the help of XaCCT systems delivering information on surfer behavior.

XaCCT, managed by Eric Gries, employs about 200 people, of whom half work at its R&D center in Israel. Since its establishment the company has raised about $52 million in five financing rounds. Its biggest shareholder is Sun Microsystems (Nasdaq:SUNW).