Light Reading
Billing giant buys its way into the cable and satellite billing sector with the $238 million acquisition of DST Innovis

Amdocs Buys Into Cable

Light Reading
News Analysis
Light Reading
7/5/2005
50%
50%

As anticipated, billing giant Amdocs Ltd. (NYSE: DOX) has added to its telecom software menu with a meaty acquisition, but its target is not the one industry watchers were expecting.

Amdocs is paying DST Systems Inc. (NYSE: DST) $238 million in cash for its cable and satellite billing and customer care systems business, DST Innovis Inc. (see Amdocs Buys DST Innovis).

DST Innovis, which recorded $183 million in operating revenues in fiscal 2004, counts DirecTV, Cablevision Systems Corp. (NYSE: CVC), and Comcast Corp. (Nasdaq: CMCSA, CMCSK) among its customers.

It will become the Broadband Cable and Satellite division within Amdocs, and will be run by the current DST Innovis CEO Peter Nault and his management team, with some input from a few Amdocs suits (and, hopefully, some executives, too).

Amdocs executives told a conference call this morning that the acquisition is "all about growth, and will position Amdocs in a growing industry" as the cable and satellite players expand their service offerings. Amdocs also believes there are opportunities to sell its current telecom-focused software products to the cable and satellite sector, and that it can market DST Innovis's software on a more international scale.

Amdocs expects the acquisition to be neutral to its fourth-quarter fiscal 2005 earnings per share, excluding acquisition-related costs, but expects it to be earnings positive in fiscal 2006 and beyond. The company expects a one-off charge related to the acquisition in the fourth quarter ending September 30 this year.

The news sent Amdocs' share price up by $1.07, or 4 percent, to $27.80. DST Systems' share price rose slightly, by 5 cents to $47.

This isn't the billing firm's first acquisition in recent weeks, and telecom executives had been expecting the company to swoop again as it seeks to broaden its OSS capabilities (see Amdocs Buys Chinese Firm and Amdocs Offers OSS Suite). But the expected target was inventory management specialist Cramer Systems Ltd. (see OSS Business Is Buoyant). Inventory management is just about the hottest OSS area right now, and Cramer one of the sector's leaders (see Cramer Dubs Dubois CEO). Amdocs tried to buy its way into the market last year by bidding for Granite Systems, but was pipped at the post by Telcordia Technologies Inc. (see Telcordia Nearly Blew Granite Deal).

Cramer isn't the only company rumored to be in Amdocs' sights. Israeli newspaper Globes recently reported unnamed sources as saying that Amdocs is scoping out growing provisioning specialist Syndesis Ltd. and two other firms in the inventory management sector, MetaSolv Software Inc. (Nasdaq: MSLV) and the privately held NetCracker Technology Corp.

Amdocs declined to comment on any potential OSS acquisitions or market speculation.

— Ray Le Maistre, International News Editor, Light Reading

(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 Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Graham Finnie from Heavy Reading about some of the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control.
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
LRTV Interviews
Bob Wilson, Arsenal Legend: The Light Reading Interview

1|16|15   |   35:36   |   (3) comments


Arsenal goalkeeping legend Bob Wilson was Light Reading's guest interviewee at the 2020 Vision Executive Summit in December. See what the former soccer star and sports broadcaster had to say when he took to the stage in Iceland.
LRTV Custom TV
What MEF Third Network Initiative Means for SDN & NFV

1|14|15   |   6:13   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss discusses the importance of the MEF Third Network initiative and why it's good news for SDN/NFV industry initiatives.
LRTV Huawei Video Resource Center
Frank Miller: Distributed Solutions are the Best Build for the Future - Part II

1|9|15   |   2:46   |   (0) comments


At SCTE, Frank Miller, Global CTO of MSO at Huawei, speaks about Cable 2.0 and its innovative future.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Cuomo Unveils Broadband Aid Program
Alan Breznick, Cable/Video Practice Leader, 1/19/2015
FiOS Picks Up Pace Again
Alan Breznick, Cable/Video Practice Leader, 1/22/2015
BlackBerry Wants Net Neutrality Protection -- That's Just Sad
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/22/2015
Indiana Carrier Takes Fiber to the Farm
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/22/2015
Verizon Ready for Google MVNO Challenge
Dan Jones, Mobile Editor, 1/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive