Light Reading

Amdocs Continues Spending Spree

Ray Le Maistre

With 2007 only three days old, Amdocs Ltd. (NYSE: DOX) has opened its wallet and further strengthened its billing and service delivery capabilities by acquiring the 86 percent of SigValue Technologies it didn't already own, for $54 million in cash. (See Amdocs Acquires SigValue.)

The move continues the consolidation trend set in 2006 that helped create a core group of über telecom software player giants that look set to dominate the OSS and service delivery sector in the coming years: Amdocs, IBM Corp. (NYSE: IBM), HP Inc. (NYSE: HPQ), Oracle Corp. (Nasdaq: ORCL), and Telcordia Technologies Inc. (See M&A Reshapes OSS Sector and Who Makes What: OSS .)

Further telecom software M&A deals, both large and small, are expected in the next 12 months. (See Is Telcordia Preparing for a Sale? )

So what has Amdocs -- which in 2006 bought OSS firm Cramer Systems, content download system vendor Qpass, and directories software specialist Stibo Graphic Software -- bought this time? (See Amdocs Snaps Up Cramer and Amdocs Buys Into Content Delivery.)

SigValue's key strength is an integrated billing, customer care, and data service delivery platform targeted primarily, though not exclusively, at mobile carriers operating in high-growth emerging markets such as Africa, Latin America, Eastern Europe, and Asia/Pacific, where the majority of wireless subscribers are pre-paid customers.

SigValue's system, called Value, was designed to keep operating costs down by integrating the key functions needed to manage and provision pre-paid services, including VOIP. The integrated system includes application server and media gateway technology, sourced from NMS Communications Corp. , that supports legacy voice and data protocols as well as SIP.

Its customers include Russian mobile operator VimpelCom Ltd. (NYSE: VIP) and Millicom International Cellular SA (Nasdaq: MICC) , which has operations in markets throughout Asia/Pacific, Africa, and Latin America. (See Millicom Tops 10M Subs.)

The Value system can also be used in fixed-line environments, where Bezeq, The Israel Telecommunications Corp. Ltd. (OTC: BZQIF) is a customer. (See Veraz Pushes VOIP.)

Amdocs's move comes as the mobile industry looks to the emerging markets for its next wave of growth, an expectation that is fueling a race to own assets in some key territories. (See Essar Offers $11B for Hutch Buyout, 2006 Top Ten: Emerging Trends, Moto Targets Emerging Markets, Emerging Markets Boost Ericsson, and Africa Racks Up Mobile Subs .)

Amdocs already owned 14 percent of the privately held six-year-old Israeli company, so it's buying the remaining 86 percent from the other shareholders, including VC firms Holland Venture and AIG Orion Venture Capital , for $54 million in cash.

The deal is expected to close before the end of March and be neutral to non-GAAP earnings in fiscal 2007 (ending September 30, 2007). Amdocs says, though, it may incur a one-time charge in the current quarter "to account for certain costs related to the acquisition."

The news sent Amdocs' share price down by $0.95, nearly 2.5 percent, to $37.81 today, giving the company a market capitalization of $7.8 billion. In its most recent full financial year to September 30, 2006, Amdocs generated net income of $319 million from revenues of $2.5 billion.

Amdocs had not responded to requests for additional details regarding SigValue's financials or the prospects for its 75 staff, as this article was published.

— Ray Le Maistre, International News Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Beer
12/5/2012 | 3:17:08 PM
re: Amdocs Continues Spending Spree
Looks like there's a breakaway group in telecom software, with about 5 big players looking to dominate the market for OSS, BSS and, to a certain extent, SDP capabilities.

Will others be forced to join in? Should Microsoft be spreading from its Connected Services Framework SDP and its IPTV middleware solutions into more traditional telecom software sectors such as service assurance and fulfillment?

And who will be next to get snapped up?

From The Founder
Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Centec on Ethernet Switching

11|26|15   |   09:58   |   (0) comments

Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
LRTV Custom TV
Delivering Service Agility in the Virtualization Era

11|25|15   |   5.41   |   (0) comments

Interview with Massimo Fatato, WW OSS Business Lead, Hewlett Packard Enterprise.
Wagner’s Ring
How Might Open Source Fail?

11|24|15   |     |   (9) comments

Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
LRTV Custom TV
NFV Lifecycle Orchestration – a Fresh Vision for Telco

11|23|15   |   6.40   |   (0) comments

Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
Between the CEOs
Cisco's Virtual Role in Saudi

11|20|15   |   12:15   |   (2) comments

Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
LRTV Huawei Video Resource Center
Huawei Leads With Kubernetes for Cloud PaaS

11|19|15   |   08:26   |   (0) comments

Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
Women in Comms Introduction Videos
WiC in London: The Highlight Reel

11|19|15   |   5:33   |   (1) comment

NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
LRTV Documentaries
Why Saudi's So Hot for New Tech

11|19|15   |   05:07   |   (0) comments

Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
LRTV Custom TV
Why Data Models Deliver More Value Than Information Models

11|19|15   |   5.08   |   (0) comments

Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
Telecom Innovators Video Showcase
SDN Management & Orchestration in the WAN

11|17|15   |   7.20   |   (0) comments

Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
LRTV Custom TV
Flash Networks: Optimizing for Radio Spectral Efficiency

11|17|15   |   3:34   |   (0) comments

Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
LRTV Custom TV
Making Pay-TV User Experiences Millennial-Friendly

11|16|15   |   6:42   |   (0) comments

The unique challenge of reaching and engaging Millennials is driving pay-TV video experience transformation that can include higher quality UIs, viewing of multiple content streams at once and seamless transitions between handheld devices and the television.
Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
Hot Topics
Samsung to Sell Wireless Networking Unit?
Dan Jones, Mobile Editor, 11/23/2015
Samsung: No Sale of Wireless Unit
Dan Jones, Mobile Editor, 11/25/2015
Sprint, Verizon Face Reorganization, Job Cuts
Dan Jones, Mobile Editor, 11/20/2015
Sprint to Get $1.2B From New Leasing Venture
Dan Jones, Mobile Editor, 11/23/2015
How Might Open Source Fail?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/24/2015
Like Us on Facebook
Twitter Feed
December 15, 2015
Virtualizing Cable Services
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
Cats with Phones
Can't Find the Phone on Thanksgiving? Click Here
Check under the cat! (hint: bottom right)
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.