Amdocs (NYSE: DOX) today announced that it has acquired DST Innovis Inc., a provider of customer care and billing solutions to broadband media companies, from DST Systems, Inc.
This is a cash transaction in which Amdocs has acquired all of the common stock of DST Innovis for approximately $238 million.
Amdocs CEO Dov Baharav said, " The broadband media industry -- which is undergoing tremendous change and dealing with increased complexity as it continues to converge with the telecommunications industry -- represents a considerable opportunity for Amdocs. DST Innovis' capabilities complement Amdocs existing strength in telecommunications and allow us to take advantage of the opportunity presented by the broadband industry."
DST Innovis provides billing and customer care solutions to major cable broadband and satellite companies, including DIRECTV, Comcast and Cablevision, supporting about 37 million subscribers worldwide. With revenues of approximately $233 million in fiscal 2004, DST Innovis has about 700 employees, predominantly located in Sacramento, California and Charlotte, North Carolina.
DST Innovis will operate as the broadband cable and satellite division within Amdocs and will have global responsibility for the broadband media market. The new division will continue to be led by Peter Nault, CEO and president of DST Innovis, and the current management team, with some members from Amdocs joining the management team to facilitate a smooth transition.
Amdocs also signed a long-term agreement with DST Output to continue to support the printing and mailing of bills for the DST Innovis customer base. Under the terms of this agreement, DST Output will be a preferred vendor of billing print and mail for projects that combine those services with billing support, and is expected to be selected as the provider of these services for additional Amdocs North American customers.
Amdocs may incur a one-time charge in its fourth fiscal quarter ending September 30, 2005 to account for certain costs related to the acquisition.
Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, July 05, 2005