Amdocs (DOX) to Acquire Comverse's (CNSI) BSS Assets in $272M Cash Deal
Comverse (NASDAQ: CNSI) announced it has reached a definitive agreement to sell substantially all of its BSS business assets to Amdocs (Nasdaq: DOX). The total purchase price is $272 million in cash. The transaction is expected to close by the end of September 2015, subject to various closing conditions.
"Size and scale in BSS are critical to succeed in today's increasingly consolidating telecommunications service provider marketplace, while smaller, niche players face a more uncertain future," said Philippe Tartavull, President and Chief Executive Officer, Comverse. "The combination of Comverse's customer base with Amdocs' BSS products and services creates new opportunities for our clients and Comverse employees joining Amdocs. Now, Comverse can focus exclusively on expanding our existing significant global market leadership in the Digital Services arena, and 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."
He added, "After we complete this transaction, Comverse will be a profitable company, with an exceptionally strong balance sheet and a large portfolio of NOLs. With recent steps we've taken to secure a more advanced and flexible research and development operation, as well as reducing operating costs, we believe Comverse is very well positioned to become the leader in Digital Services through both organic growth and M&A activity, all of which should benefit our customers, employees and shareholders."
"As a result of this acquisition, Amdocs, with our more than 30-year industry experience, will be able to bring additional value to Comverse's customers," said Eli Gelman, President and CEO of Amdocs. "We look forward to providing our combined customer base with a continued outstanding level of product innovation and customer service, and strengthening Amdocs' position in key emerging markets."
Comverse's BSS business unit generated approximately $251 million in revenue in the fiscal year 2014.
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