ST. LOUIS -- Amdocs (NYSE: DOX - News), the leading provider of software and services to enable integrated customer management and the intentional customer experience, today announced that it has acquired DST Innovis Inc. and DST Interactive, Inc., ("DST Innovis"), a leading provider of customer care and billing solutions to broadband media companies, from DST Systems, Inc. This is a cash transaction in which Amdocs has acquired all of the common stock of DST Innovis for approximately $238 million. The acquisition propels Amdocs into a leadership position in the broadband media marketplace, which includes cable and satellite companies.
DST Innovis provides billing and customer care solutions to the largest cable broadband and satellite companies, including DIRECTV, Comcast and Cablevision, supporting about 37 million subscribers worldwide. With revenues of approximately $233 million in fiscal 2004, DST Innovis has about 700 employees, predominantly located in Sacramento, California and Charlotte, North Carolina.
"We are very excited about this acquisition. The broadband media industry -- which is undergoing tremendous change and dealing with increased complexity as it continues to converge with the telecommunications industry -- represents a considerable opportunity for Amdocs," said Dov Baharav, chief executive officer of Amdocs Management Limited. "DST Innovis adds strategic value to Amdocs as a result of its proven expertise in the broadband industry, strong existing relationships with industry leaders, significant market share in the U.S. and leading technology assets. DST Innovis' capabilities complement Amdocs existing strength in telecommunications and allow us to take advantage of the opportunity presented by the broadband industry. As a result, Amdocs will be in a unique competitive position to offer the most comprehensive set of solutions to help broadband media and satellite companies transition to integrated customer management, or ICM, which has become an imperative for companies across the entire communications service provider spectrum."
DST Innovis will operate as the Broadband Cable and Satellite division within Amdocs and will have global responsibility for the broadband media market. The new division will continue to be led by Peter Nault, chief executive officer and president of DST Innovis, and the current management team, with some members from Amdocs joining the management team to facilitate a smooth transition.