& cplSiteName &

Amdocs Buys Xacct (At Last)

Light Reading
News Analysis
Light Reading
12/22/2003
50%
50%

Billing giant Amdocs Ltd. (NYSE: DOX) finally splashed some cash on mediation system specialist Xacct Technologies Inc. today, hoping to bring itself up to snuff with its key competitors (see Amdocs Buys Xacct).

Amdocs is paying $13.5 million in cash and $16 million in stock for fellow Israeli firm Xacct, which has about 70 service provider customers and annual revenues believed to be upwards of $20 million. Xacct had raised $87 million in funding since its launch in 1997.

The deal has had little impact on Amdocs' share price, which currently stands at $22.30, down 16 cents, less than 1 percent, from Friday's closing price of $22.46.

And Amdocs is getting one of the best known mediation firms in the world for its money. In a recent Heavy Reading OSS market perception study (see Heavy Reading Takes on OSS), Xacct was ranked as the second most recognized name in the mediation market -- behind Hewlett-Packard Co. (NYSE: HPQ) -- with nearly 50 percent of operator executives with knowledge of that sector recognizing it as a player. Xacct was ranked third overall in the survey's mediation category once scores for price, performance, quality and reliability, and service and support were taken into account. It was beaten only by HP and Intec Systems Inc.

But while the price may not seem too high for an established OSS player, OSS Observer analyst Mark Basham thinks Amdocs could have paid less: "This was a distressed sale. Xacct has some good technology, but it has been cutting back its staff for a while and has been in financial difficulties for at least a year or so. I think Xacct's investors might have been pushing very hard to get some cash as part of the deal, and at that price it may be that someone might have been doing a friend a favor."

In the summer, Xacct claimed to have about 110 on staff, but it is unknown how many are left and making the move to Amdocs, and whether the company's headquarters and a development center in Santa Clara, Calif., and another R&D site in Tel Aviv, are to be retained. Amdocs had not responded to questions as this story was published.

Rumors have been rife for some time that the deal was about to close (see Amdocs, Xacct Diss Takeover Talk), and insiders had often leaked stories to the Israeli business press of teams of Amdocs executives roaming Xacct's corridors. Past reports had also alleged a series of offers from Amdocs, some citing hundreds of millions of dollars before the bubble burst, that had been rejected by Xacct's backers for being too low. Anyone for schadenfreude?

So why would Amdocs want Xacct anyway? Well, it gives the software and services firm its own mediation technology, something its main billing system rivals Convergys Corp. (NYSE: CVG) and CSG Systems International Inc. (Nasdaq: CSGS) already have. Each of the main billing system players has been building a broader range of technical capabilities around its core billing components for some time.

The move follows several other recent acquisitions in the mediation system sector (see Openet Buys Sepro for a Song and Intec Snaps Up Digiquant), and analysts such as Basham expect further consolidation in the OSS market.

— Ray Le Maistre, International Editor, Boardwatch

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP’s Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it’s going from two industry veterans.
LRTV Custom TV
Cisco's Innovations in Cable

5|26|16   |   03:18   |   (0) comments


Marc Aldrich from Cisco discusses the latest in security, the evolution and momentum for CCAP and what the industry will be seeing next from Cisco.
LRTV Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
DT: Telcos Must Escape Vendor Prison
Iain Morris, News Editor, 5/24/2016
AT&T to Start 5G 'Friendly' Trial by 2016 End
Dan Jones, Mobile Editor, 5/24/2016
Cable Is Eyeing Its Retail Options
Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
AT&T's Margaret Chiosi Retires
Ray Le Maistre, Editor-in-chief, 5/25/2016
Verizon Backpedals on Go90
Mari Silbey, Senior Editor, Cable/Video, 5/24/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.