Intec (News - Alert) Telecom Systems PLC is about to have a new owner. CSG Systems International, a provider of billing services to cable-television operators, has agreed to buy the company for just shy of $371 million, according to a Market Watch report.

CSG plans to fund the purchase with existing cash resources and new debt facilities. According to Intec Chief Executive Officer, Andrew Taylor, the deal will create a global leader with significant scope in product. The combined company will have more than 3,500 employees.

In a London research note, analyst David Toms at Numis Corp. said that while shareholders are likely to welcome the offer, the price feels very low. Numis notes there is a reasonable change of an industry counter bidder. The firm has a “buy” recommendation on this stock.

“Given the increasingly difficult market conditions and the importance of scale and relevancy to our customers, this combination represents a good deal for Intec and provides certainty for our shareholders,” Taylor said in the statement.

According to reports, Intec’s directors will unanimously recommend to shareholders that they vote in favor of the acquisition. Greenhill is acting as financial adviser to Englewood, Colorado-based CSG, while RBS Hoare Govett is acting as the exclusive financial adviser to Intec.

Commenting on the acquisition, Peter E. Kalan, Chief Executive Officer of CSG, said, “The communications industry is dramatically changing. Consumers have more choices for content, devices and providers. This has created an opportunity for service providers to differentiate their offerings by being more flexible and responsive to the end consumers.

“We believe that both Intec’s broad suite of solutions aimed at fixed mobile and next generation networks and CSG’s extensive customer interaction management suite will be attractive to one another’s customer base as well as service providers worldwide.”

Both companies are said to be highly complementary in nature and a successful acquisition could result in a powerful player. If Numis is correct, however, this bid could just be the beginning of an all-out competition for a strong provider.