Amdocs (NYSE:DOX), the leading provider of software and services to enable integrated customer management and the intentional customer experience, today announced that it completed the acquisition of SigValue Technologies (SigValue), a provider of an integrated billing, customer care, and service control platform designed for service providers in high-growth emerging markets around the world.
With previous ownership of approximately 14 percent of SigValue's outstanding capital stock, Amdocs acquired all of SigValue's remaining share capital for approximately $54 million in cash, net of cash on hand.
SigValue's platform addresses the needs of pre-paid mobile subscribers who represent the vast majority of customers in the emerging markets and tend to have relatively low levels of average revenue per user. The platform combines the basic functions required for billing and customer care with a service control function, offering a single system that supports multiple networks, multiple services and all lines of business.
"With SigValue, Amdocs is now able to provide solutions that connect directly to service providers' networks, and address the needs of providers in markets that are in the earliest stages of development through those that have the most advanced and sophisticated requirements in the world," said Patrick McGrory, Network Business Unit president, Amdocs. "We believe that Amdocs' unparalleled expertise and experience in telecommunications, combined with SigValue's light-weight, real-time service platform technology and its sales channels, will enable Amdocs' success in the high-growth emerging markets."
SigValue forms the core of the newly created Network Business Unit at Amdocs, focusing on service providers in emerging markets. Patrick McGrory is the Unit's president.
The impact of the acquisition on Amdocs' non-GAAP earnings per share is expected to be neutral in fiscal 2007. The impact on GAAP results is expected to be dilutive in fiscal 2007 but will not be known until after Amdocs completes the purchase price accounting for the acquisition. Amdocs may incur a one-time acquisition-related charge in the quarter ending March 31, 2007 to account for certain costs related to the acquisition.