Amdocs acquires Celcite for $129m

Celcite's business service solutions serve mobile providers and will expand Amdocs's business systems services.

Billings and business systems provider Amdocs Ltd. (NYSE: DOX) is acquiring Celcite Management Solutions LLC, for $129 million in cash. The acquisition price may rise depending on performance milestones.

Amdocs said that the acquisition expands its customer experience portfolio further into the network software domain to manage customer experience across both networks and IT. The deal is due to be completed late in Amdocs' current first fiscal quarter or at the beginning of the second fiscal quarter.

Amdocs said that the acquisition of Celcite builds on the $120 million acquisition of Actix in September, and demonstrates the business systems provider's continued commitment to its network software and services strategy.

Amdocs added that, "by combining Actix's market leading products with Celcite's comprehensive network management and Self Optimizing Networks (SON) services and offering capabilities, Amdocs will be able to offer service providers comprehensive equipment-agnostic optimization solutions."

Amdocs will also be expanding its CES (Customer Experience Systems) portfolio with quality-of-service (QOS) focused, geo-located network data that will drive a variety of optimization use cases. Amdocs continued that the acquisition will make it the first supplier to offer customer experience-driven network optimization software and services based on a holistic view of the customer experience across all domains.

Together with Actix and Celcite, Amdocs said that it will be able to provide communication service providers around the globe with a wide range of product-led services to better optimize their hybrid mobile networks, including solutions that can accelerate the rollout of existing networks and new network deployments such as LTE, WiFi and small cells. These solutions will be agnostic to manufacturers of network equipment and components.

Amdocs VP product and solutions marketing Rebecca Prudhomme said, "Amdocs customers must optimize their networks to handle the data explosion and reduce associated costs. One of their largest pain-points is dealing with issues that arise within the radio network, which are typically responsible for a large percentage of all customer satisfaction and churn problems. The acquisition will enable Amdocs to better offer our customers solutions (both products and services) for the management and Radio Access Network (RAN) optimization of all mobile networks including 2G, 3G, LTE and small cells to maximize the return from their network assets."

Amdocs expects the acquisition of Celcite to only marginally affect 2014 non-GAAP earnings per share. The company added that impact on GAAP results will not be known until after Amdocs completes the purchase price accounting for the acquisition. Amdocs may incur acquisition-related expense in fiscal year 2014 to account for certain costs related to the acquisition.

Published by Globes [online], Israel business news - - on November 6, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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