Amdocs (NASDAQ:DOX), a leading provider of customer experience solutions, has acquired a substantial majority of Comverse Inc.’s (NASDAQ:CNSI) business support systems (BSS) business unit assets for approximately $272 million in cash.
The boards of directors of Comverse and Amdocs have approved the transaction, which is expected to be completed before end of September 2015, subject to customary closing conditions.
Amdocs is purchasing a substantial majority of Comverse’s BSS assets and will maintain and support Comverse customers around the world. The acquisition geographically complements Amdocs’ market focus by expanding and diversifying Amdocs’ global customer base, particularly in Asia Pacific, Latin America and Europe, and including Europe’s cable and satellite market. Publicly traded Comverse will continue to exist as a separate company, with a singular focus on expanding its global market leadership in digital services.
“Amdocs is a leader in customer experience solutions for the communications industry. With Amdocs’ broad range of products and services, this agreement will only serve to benefit existing Comverse BSS customers,” said Philippe Tartavull, president and chief executive officer, Comverse. “Customers should feel assured by Amdocs’ experience with smoothly integrating acquisitions and their commitment to maintaining and growing relationships.”
“As a result of this acquisition Amdocs, with its more than 30-year industry experience, will be able to bring additional value and innovation to Comverse’s customers,” said Eli Gelman, president and chief executive officer for Amdocs Management Limited. “As we move forward, the strength of our company and unique business model which combines products and services will enable Amdocs to offer even better services to customers as we leverage our joint professional industry expertise for the benefit of our customers.”
Comverse was originally founded in Israel as Comverse Technology in 1997, becoming one of Israel’s flagship high-tech companies. Its BSS asset sale to Amdocs is part of a multi-step divestment plan. Two weeks ago, Comverse announced a strategic partnership agreement with India’s Tech Mahindra, involving the transfer of hundreds of Comverse digital services employees to the Indian company’s new R&D center in Israel.
Comverse Inc. is currently headquartered in Wakefield, Massachusetts, and will continue to exist as a separate company, with a focus on expanding its global market leadership in digital services. Comverse provides true carrier-grade cloud-based and in-network monetization and revenue management software solutions that help global carriers and growing enterprises profitably enable the way people obtain and share digital experiences, today and tomorrow. The company supports digital lifestyles through a suite of proven and flexible solutions that includes managed BSS and Policy, Enterprise and Cloud Billing, and Digital Services, all guided by an experienced Managed Services offering. Comverse’s customer base spans more than 125 countries.
Amdocs is a global company with revenue of $3.6 billion in fiscal 2014, and a current market capitalization of $8.66 billion. It has more than 22,000 employees serving customers in over 80 countries. The company provides product-driven information system solutions to major telecommunications companies. It combines a market-leading BSS, OSS and network control and optimization product portfolio with value-driven professional services and managed services operations.