Israeli business software and services provider Amdocs Ltd. (NYSE: DOX) announced that it has entered into a definitive agreement to acquire Vubiquity, a US provider of premium content services and technology solutions, for $224 million cash.
The acquisition will offer Amdocs increased capacity to deliver enhanced digital content capabilities for network operators, video distributors, OTT companies, content owners and content producers.
Amdocs president and CEO Eli Gelman said, "This acquisition uniquely positions Amdocs at the center of increased convergence across the content community and video distributors including major OTT providers. Our joint offerings address the media and entertainment industry’s challenge in balancing the incredible growth of content and the many ways to consume content with making programming easier, faster to deliver and ultimately watch, while also delivering profits."
"Vubiquity has successfully been connecting content owners and distributors across many diverse platforms and evolving business models at the core of its support to the media community," said Vubiquity CEO Darcy Antonellis, who will, upon completion of the deal, be joining Amdocs as head of the Amdocs Media Division. "Our capabilities, coupled with Amdocs’ global scale and rich set of complementary solutions around monetization, analytics and personalized customer experience will be truly unique, allowing us to deliver to a larger set of customers while solving key industry challenges. This includes helping video distributors deliver additional profitable offerings, as well as enabling content owners to focus on content creation and maximizing licensing revenues."
The impact of the acquisition on Amdocs’ diluted non-GAAP earnings per share is expected to be neutral in fiscal year 2018, and accretive thereafter. The impact on diluted GAAP EPS will not be known until after Amdocs completes the purchase price allocation. Amdocs expects to incur acquisition-related expenses related to operating adjustments, restructuring charges and other acquisition-related costs. The Boards of Directors of Vubiquity and Amdocs have approved the transaction, which subject to the satisfaction of the conditions to closing, is expected to be completed before the end of the second quarter of the 2018 US fiscal year.
The Israeli business software and services provider has also reported first fiscal quarter results that beat the analysts' expectations. Revenue was $978 million, up 2.4% from the corresponding quarter of 2016, and at the midpoint of the $960 million - $1 billion guidance range adjusting for the negative impact from foreign currency movements of roughly $2 million relative to the fourth quarter of fiscal 2017. Non-GAAP net profit was $154.5 million, or $1.06 per share, compared with non-GAAP net profit of $133.6 million, or $0.9 per share, in the first quarter of fiscal 2017.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018