Light Reading
Pays nearly $30 million for the mediation specialist, after a protracted courtship

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
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
LRTV Custom TV
Exploring the Future of Cable Access

10|15|14   |   6:23   |   (0) comments


Cisco's Brett Wingo looks at where cable access architectures are heading, discussing the impact of DOCSIS 3.1, CCAP, Remote PHY, SDN, virtualization of cable networks and related technologies.
LRTV Custom TV
Optimizing & Monetizing WiFi

10|15|14   |   5:53   |   (0) comments


Cisco's Vince Pandolfi outlines the reasons for cable WiFi's rapid growth, lays out the issues with the technology and explains the new Cisco tools that can help operators monitor and improve their WiFi delivery.
LRTV Huawei Video Resource Center
Emulex & Huawei Collaboration Mutually Beneficial

10|14|14   |   4:17   |   (0) comments


US company Emulex collaborates with Huawei in areas such as blade servers and workload documentation. Mike Heumann of Emulex believes that Huawei has done incredibly well moving from a telecom company into servers and networks, working closely with customers to realize their needs.
LRTV Huawei Video Resource Center
Chile's VZION Looks Forward to Seeing More of Huawei

10|14|14   |   4:43   |   (0) comments


VZION is a systems integrator company in Chile with a focus on virtulization technology. In this video, Cesar Alcacibar talks about the challenges in virtualization and how Huawei helps his company to achieve the best results possible. Alcacibar is expecting more adoption and integration of Huawei technologies in Chile.
LRTV Huawei Video Resource Center
Pro-Datech & Huawei for a High-Tech Singapore

10|14|14   |   2:59   |   (0) comments


Pro-Datech Systems is a specialty IT solution provider based in Singapore. For an added value to its customers, the company uses Huawei's hardware and trusted performance and features for a total solution. It's looking forward to the creation of a lab, to be based in Singapore, for the two companies' coorporation on total storage solution.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Forget the Internet, Brace for Skynet
Stephen Saunders, 10/15/2014
HBO Will Go OTT in 2015
Mari Silbey, Independent Technology Editor, 10/15/2014
Google: Carriers & Cloud Providers Need to Cooperate
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
Could Data Be the New 'Currency'?
Ray Le Maistre, Editor-in-chief, 10/16/2014
CBS Takes OTT Plunge
Mari Silbey, Independent Technology Editor, 10/16/2014
Like Us on Facebook
Twitter Feed