Amdocs to buy BSS biz unit from Comverse for $272 mn

Amdocs is set to buy business support systems (BSS) business unit from Comverse for nearly $272 million in cash.

As per the deal, Amdocs is purchasing a substantial majority of Comverse BSS unit and will maintain and support Comverse customers around the world.

Amdocs clocked $3.6 billion revenue in fiscal 2014. Comverse’s BSS business unit generated approximately $251 million in revenue in the fiscal year 2014.

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.

Comverse will continue to exist as a separate company, with a singular focus on expanding its global market leadership in digital services. Comverse will focus exclusively on expanding its existing significant global market leadership in the Digital Services arena.

“We will be driving innovation in new segments of the IP communication industry that are expected to grow significantly as CSPs and enterprises take advantage of the rollout of 4G/Volte/LTE services,” said Philippe Tartavull, president and chief executive officer, Comverse.

Eli Gelman, president and CEO, Amdocs

Eli Gelman, president and chief executive officer for Amdocs Management, said: “The strength of our company and business model which combines products and services will enable Amdocs to offer even better services to customers.”

Meanwhile, Amdocs said revenue rose 0.6 percent to $902.6 million in its second quarter ended March 31, 2015. Net income was $128.6 million against $131.9 million.

“We remained focused on delivering value to our customers, including in North America where market dynamics continue to change rapidly. In Europe, we strengthened relationships with some of our long-standing customers. EE, the UK’s largest mobile operator, has extended its managed services contract with Amdocs to develop and maintain its BSS platform,” said Gelman.

“We also expanded our business within additional buying centers of existing customers. These include TeliaSonera where our mobile network optimization solutions have been selected to improve customer experience and network performance across Sweden, Norway, Finland, Estonia and Lithuania,” said Gelman.

Amdocs has just completed the deployment of an integrated Amdocs BSS platform to provide billing business services for Vodafone India’s enterprise customers. This is part of a larger BSS transformation program in which Vodafone India is also migrating all postpaid customers onto a consolidated Amdocs billing platform.

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