Amdocs, provider of customer experience systems,
announced that it has completed the acquisition of Bridgewater Systems
Corporation, a publicly held provider of policy management and network control
Amdocs acquired 25,178,827 common shares of Bridgewater
(representing 100 percent of Bridgewater’s outstanding common shares) for
CAD$8.20 per share in cash, through a wholly owned, indirect subsidiary of
Prior to the acquisition, Amdocs did not own any
securities of Bridgewater. The transaction is valued at approximately CAD$211
million, or CAD$139 million net of Bridgewater’s cash as of June 30, 2011.
The acquisition will further expand Amdocs’ Customer
Experience Systems (CES) portfolio, allowing service providers to implement new
value-based data monetization strategies to capitalize on the data explosion.
To better monetize their networks and data services,
service providers are moving away from unlimited data packages which render the
network vulnerable to heavy usage in some cases.
Instead, they want to create new value-based pricing and
data monetization models in which customers will be offered personalized
packages that better match revenue to their consumption behavior and usage
“This strategic acquisition will enable service
providers to completely redefine the real-time data experience and maximize the
return on their network investments. We are delighted to welcome Bridgewater’s
highly innovative, skilled professionals to Amdocs as we continue expanding our
market-leading CES portfolio,” said Brian Shepherd, group president for
“Following this acquisition, service providers will
be able to benefit from data experience solutions based on a pre-integrated
combination of Amdocs’ leading convergent charging technology and Bridgewater’s
advanced policy control capabilities that address the increase in demand for
high-bandwidth services and the exponential growth of smartphones and other
connected devices,” said Ed Ogonek, president and CEO for Bridgewater.
With the Bridgewater acquisition, Amdocs will be
positioned to offer a pre-integrated policy management and charging solution to
drive service providers’ data revenue.”
Amdocs does not expect a material impact from the
acquisition of Bridgewater on fiscal year 2011 or fiscal year 2012 non-GAAP
earnings per share, which excludes acquisition related costs and equity-based
compensation expense, net of related tax effects.
The impact on GAAP results will be finalized after Amdocs
completes the purchase price accounting for the acquisition. Amdocs may incur
acquisition-related expense in fiscal 2011 to account for certain costs related
to the acquisition.
In addition to the product and solution synergies, Amdocs
and Bridgewater also share numerous top-tier customers, including Bell
Mobility, Sprint and Telstra.