TeleCommunication Systems Inc. has acquired the assets of Open Telephone Network Inc., the Annapolis, Md.-based company announced Oct. 2.

Open Telephone Network Inc. of Berkeley, Calif., which goes by the name Otelnet, is a privately held provider of real-time and on-demand intelligent notifications and alerting solutions for the wireless industry.

Terms of the acquisition include an initial payment and future incentives, either in cash or TCS common stock, at TCS’ option, based on Otelnet’s 2003 performance. Further terms were not disclosed.

The acquisition will strengthen TCS’ position in the short message service portal market, the company said. The acquisition also reduces TCS’ research and development funding requirements for important messaging product functionality, while enhancing the company’s deal pipeline and market penetration prospects in Europe, according to the company.

“This acquisition is a strategic fit for TCS,” said Maurice B. Tose, TCS’ chairman and chief executive officer.

Tose said Otelnet’s software would advance TCS’ alerting capabilities and would help the company accelerate production and avoid high costs associated with product development.

TCS is a provider of software and solutions to wireless telecommunications carriers and to government customers requiring high reliability and security.

The company has about 500 employees and had annual revenue of $70 million in 2001, according to Hoover’s Online of Austin, Texas.