Amdocs has announced to acquire a substantial majority of Comverse's business support systems (BSS) business unit assets for $272 million in cash.
Amdocs said the acquisition would expand and diversify its customer base, particularly in Asia Pacific, Latin America and Europe, and including Europe's cable and satellite market.
Comverse, which is in the progress of divesting its assets, said it will continue to exist as a separate company, with a focus on expanding its global market leadership in digital services.
“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.
“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.”
The deal, which has been approved by both companies’ board of directors, is expected to be completed before end of September.
The acquisition comes on the same day as Amdocs said its revenue for the March 31 quarter rose 0.6% year-on-year to $902.6 million while net income grew slightly to $116.3 million from $110.4 million a year earlier.
In a separate announcement, Indonesian direct-to-home Pay TV services provider Transvision has selected Amdocs to provide customer care and billing solution to support its expansion plans in Indonesia.
Amdocs will provide Transvision with a pre-integrated customer care and billing solution which will enable the pay TV operator to quickly provide innovative new service, promotions and campaigns, while accommodate rapid customer growth, the company said.