Amdocs says it will get greater reach in Europe, Latin America and Asia-Pac and leave Comverse to focus on digital services.

Sarah Thomas, Director, Women in Comms

April 29, 2015

2 Min Read
Amdocs Splashes $272M on Comverse's BSS

Amdocs is acquiring Comverse's BSS business in a deal worth $272 million that will let Amdocs expand its geographical reach and allow Comverse to focus solely on its digital business.

Amdocs Ltd. (NYSE: DOX) says its acquisition of a "substantial majority" of former competitor Comverse Inc. (Nasdaq: CNSI)'s business support systems (BSS) business unit will allow Amdocs to diversify its customer base into Asia Pacific, Latin America and Europe's cable and satellite market.

Comverse, which has been in the process of restructuring amidst financial struggles, will continue to exist as a separate company, now solely focused on digital services. In announcing the acquisition, the CEOs of both companies stressed Amdoc's experience integrating acquired companies and its desire to add value to Comverse's existing customers. (See Getting to Grips With Comverse.)

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Amdocs has long been rumored to be interested in Comverse's billing assets as part of its bid to expand through acquisitions. And, for its part, Comverse was looking for a way out. Earlier in the week the vendor also signed an agreement with Tech Mahindra Ltd. to transfer some of its digital services employees to the Indian company as part of its plan to layoff 14% of its workforce. (See 10 SPIT Vendors to Watch in 2015.)

The acquisition has been approved by both companies' boards and is expected to close by September. Amdocs says it will have a neutral effect on its earnings in the first year after closing and will be accretive thereafter. Shares of the company were trading up .25%, or .14 points, to $55.57 after the deal was announced Wednesday.

— Sarah Thomas, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editorial Operations Director, Light Reading

About the Author(s)

Sarah Thomas

Director, Women in Comms

Sarah Thomas's love affair with communications began in 2003 when she bought her first cellphone, a pink RAZR, which she duly "bedazzled" with the help of superglue and her dad.

She joined the editorial staff at Light Reading in 2010 and has been covering mobile technologies ever since. Sarah got her start covering telecom in 2007 at Telephony, later Connected Planet, may it rest in peace. Her non-telecom work experience includes a brief foray into public relations at Fleishman-Hillard (her cussin' upset the clients) and a hodge-podge of internships, including spells at Ingram's (Kansas City's business magazine), American Spa magazine (where she was Chief Hot-Tub Correspondent), and the tweens' quiz bible, QuizFest, in NYC.

As Editorial Operations Director, a role she took on in January 2015, Sarah is responsible for the day-to-day management of the non-news content elements on Light Reading.

Sarah received her Bachelor's in Journalism from the University of Missouri-Columbia. She lives in Chicago with her 3DTV, her iPad and a drawer full of smartphone cords.

Away from the world of telecom journalism, Sarah likes to dabble in monster truck racing, becoming part of Team Bigfoot in 2009.

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