Amdocs to acquire Comverse BSS assets for $272 million
30 April 2015 |
Amdocs is set to acquire Comverse’s business support systems (BSS) in a deal valued at $272 million.
Amdocs said the acquisition of a substantial majority of Comverse’s BSS business unit will enable it to expand and diversify its customer base, particularly in Asia Pacific, Latin America and Europe, and including Europe’s cable and satellite market.
Comverse, which will continue to exist as a separate company, will focus on expanding its digital services.
"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 CEO of Amdocs Management.
"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 announcement comes after Comverse signed a service agreement to transfer several employees in its digital services unit to IT company Tech Mahindra as part of a restructuring plan.
Amdocs said the acquisition is expected to have a neutral effect on its earnings in the first year after closing, and will be accretive after.
The sale, approved by the boards of both companies, is expected to close by September 2015.