& cplSiteName &

Amdocs Buys Xacct (At Last)

Light Reading
News Analysis
Light Reading

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
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
Friday, October 28, 1:00PM EDT
Security: The Plusses and Minuses of Open Source Software
Nick Feamster, Acting Director, Center for Information Technology Policy, Princeton University
Wednesday, November 9, 1:00PM EST
MANO 101
Friday, November 11, 1:00PM EST
Open Source for NFV MANO
Wednesday, November 16, 1:00PM EST
SDN 101
John Isch, Practice Director, Network & Voice, Orange Business Services
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
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
OneAccess NFV Solutions

10|26|16   |   5:30   |   (0) comments

Antoine Clerget, CTO of OneAccess, discusses how his company has expanded its product line from enterprise-class routers to include a universal virtualized CPE as well as a suite of VNFs to help telco customers evolve to an NFV future.
LRTV Custom TV
The Journey Toward Carrier-Grade WiFi

10|26|16   |   3:39   |   (0) comments

In this Light Reading interview, Dave Sperling, CTO at Smith Micro Software and active participant of the WBA's policy working group, discusses the need for carrier-grade WiFi. Technical and business challenges slowing the fulfillment of this goal are addressed, as well as management strategies that will enable communication service providers to optimize end user ...
LRTV Custom TV
ZTE BBWF Highlights

10|26|16   |     |   (0) comments

At BBWF 2016, ZTE showed a broad range of innovative technologies that are kick-starting an ultrafast broadband journey.
LRTV Custom TV
Next-Generation Technology Beyond DOCSIS 3.1

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Liu Jianhua speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Hybrid Video Solutions to Change TV, Change Future

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Ian Locke speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei Future-Oriented Giga Coax Network

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Allen Wang speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei at SCTE 2016

10|20|16   |     |   (0) comments

Join Alan Breznick of Light Reading and take a sneak peek at the Huawei booth at SCTE 2016.
LRTV Custom TV
Assuring Network Quality in a Rapidly Changing Environment

10|20|16   |     |   (0) comments

As the rate of change and complexity increases in agile networks, the importance of introducing DevOps methodologies for integrating active test and assurance solutions throughout the full service lifecycle becomes critical to ensure that customers are experiencing the service quality they demand. The industry landscape is changing, and software-based test and ...
Telecom Innovators Video Showcase
A10 Networks on Service Providers' Industry Needs

10|20|16   |     |   (0) comments

Light Reading's Steve Saunders hears how A10 enables service providers to accelerate, secure and optimize their application delivery to drive down costs, enhance service availability, and better respond to customer requirements, so they can improve customer satisfaction, monetize their network, and grow revenues.
LRTV Custom TV
New NFV Use Cases for Cable TV

10|19|16   |     |   (0) comments

A large number of NFV use cases are focused on the enterprise domain, looking at virtualization of customer-premises equipment (CPE). To date, there has been little focus on the use cases and business case for virtualization of the video content delivery networks required to deliver unicast and streaming video to consumers. Amdocs commissioned Analysys Mason to ...
Women in Comms Introduction Videos
Meet the Future Workforce: New Faces, Expectations & Motivations

10|19|16   |   5:33   |   (1) comment

Millennials and their younger peers, Gen Z, expect more out of their network and more out of their work. Intel's Lynn Comp shares how the industry can prepare for this new generation of workers.
LRTV Custom TV
ZTE Global Services User Congress 2016 Highlights

10|19|16   |     |   (0) comments

ZTE held its 2nd Global Service User Conference in Dusseldorf on October 13-14. Representatives from network operators, leading industry analysts and ZTE senior expertsattended the event, exploring the best practice in managed services and the vision to transform network operations into the operations center of the future (OpCF) in the software-defined networking ...
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Attacks Have Major Internet Sites on the Ropes
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/21/2016
Trump: Dump AT&T/TW & Comcast/NBC
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/24/2016
Google Fiber Hits Pause Button, Scales Back
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/26/2016
Layer3 TV Comes to Town, Hints at Future
Mari Silbey, Senior Editor, Cable/Video, 10/21/2016
T-Mobile: AT&T & TW Means Ma Bell Not Focused on Mobile
Dan Jones, Mobile Editor, 10/24/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
'Oh, Were You Looking for This?' Click Here
'I was just playing some games...'
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.