ST. LOUIS, April 29, 2015 (GLOBE NEWSWIRE) -- Amdocs (Nasdaq:DOX), the leading provider of customer experience solutions, today announced it has entered into a definitive agreement to acquire a substantial majority of Comverse's business support systems (BSS) business unit assets for approximately $272 million in cash, subject to customary closing conditions. The Boards of Directors of Comverse and Amdocs have approved the transaction which, subject to the satisfaction of the conditions to closing, is expected to be completed before end of September 2015.
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."
The impact of the acquisition on Amdocs' diluted non-GAAP earnings per share (excluding amortization of purchased intangible assets and other acquisition related costs and equity-based compensation expense, net of related tax effects) is expected to be neutral in the first year after closing, and accretive thereafter. The impact on diluted GAAP EPS will not be known until after Amdocs completes the purchase price allocation. Amdocs expects to incur acquisition-related expenses related to operating adjustments, restructuring charges and other acquisition-related costs.
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For more than 30 years, Amdocs has ensured service providers' success and embraced their biggest challenges. To win in the connected world, service providers rely on Amdocs to simplify the customer experience, harness the data explosion, stay ahead with new services and improve operational efficiency. The global company uniquely combines a market-leading BSS, OSS and network control and optimization product portfolio with value-driven professional services and managed services operations. With revenue of $3.6 billion in fiscal 2014, Amdocs and its more than 22,000 employees serve customers in over 80 countries.
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Amdocs' Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business markets that it serves, Amdocs' and Comverse's abilities to close Amdocs' proposed acquisition of Comverse assets, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2014 filed on December 8, 2014 and our quarterly 6-K form furnished on February 9, 2015.
CONTACT: Media Contact: Sara Preto Fusion PR for Amdocs Tel: +1-212-651-4214 E-Mail: email@example.com