Comverse is to sell substantially all of its BSS business assets to Amdocs for $272 million in cash. The transaction is expected to close by the end of September 2015, subject to various closing conditions.
“Size and scale in BSS are critical to succeed in today’s increasingly consolidating telecoms service provider marketplace, while smaller, niche players face a more uncertain future,” said Philippe Tartavull, the president and chief executive of Comverse. “The combination of Comverse’s customer base with Amdocs’ BSS products and services creates new opportunities for our clients and Comverse employees joining Amdocs. Now, Comverse can focus exclusively on expanding our existing significant global market leadership in the digital services arena, and driving innovation in new segments of the IP communication industry that are expected to grow significantly as CSPs and enterprises take advantage of the rollout of 4G/Volte/LTE services.”
Eli Gelman, the president and chief executive of Amdocs, added: “As a result of this acquisition, Amdocs, with our more than 30-year industry experience, will be able to bring additional value to Comverse’s customers. We look forward to providing our combined customer base with a continued outstanding level of product innovation and customer service, and strengthening Amdocs’ position in key emerging markets.”
Comverse’s BSS business unit generated approximately $251 million in revenue in the fiscal year 2014.
