Amdocs Acquires MX Telecom to Expand its OpenMarket Business
MX Telecom to Become Part of Amdocs' OpenMarket; Acquisition Expands Position in the Global Mobile Payments and Services Domain
ST. LOUIS and LAS VEGAS - March 23, 2010
Amdocs (NYSE: DOX), the leading provider of customer experience systems, today announced that it has acquired MX Telecom Ltd. MX Telecom is a leading mobile payments and messaging aggregator with operations in Europe, United States and Australia. Under the terms of the agreement, Amdocs has acquired MX Telecom for approximately $104 million USD in cash, net of debt and cash. This announcement was made at International CTIA Wireless 2010 taking place this week.
MX Telecom will become part of Amdocs' OpenMarket, a business of Amdocs that operates a market leading mobile transaction hub. The acquisition accelerates OpenMarket's plans for global expansion into key markets. The joint OpenMarket MX Telecom business will provide a hosted platform to extend mobile payment and messaging capabilities through an integrated network and product portfolio.
Jay Emmet, General Manager of OpenMarket, said, "This strategic acquisition expands OpenMarket's global footprint and substantially increases our market leadership in the rapidly growing mobile payments market that will extend well beyond messaging in the coming years. In addition, it strengthens our product portfolio with an extensive set of value-added services for merchants."
Alex Moir, Managing Director of MX Telecom, stated, "We are delighted to be joining forces with OpenMarket. OpenMarket's mobile payments platform is highly synergistic with MX Telecom. This acquisition will enable the combined organization to better serve our customers and accelerate our global growth plans. Our employees are proud of what MX Telecom has accomplished, and we look forward to continuing to shape the industry as part of the OpenMarket team."
Brian Shepherd, President of Amdocs Interactive, stated, "Amdocs is committed to the OpenMarket business and its global expansion. Amdocs' deep relationships with service providers around the world, combined with the OpenMarket MX Telecom mobile transaction platform, have the power to transform the mobile services industry. As a hosted distribution channel for mobile services, OpenMarket enables service providers to efficiently use this channel to monetize emerging mobile services to brands, marketers, enterprises, and digital content providers."
Under the terms of the agreement, Amdocs has acquired MX Telecom for approximately $104 million USD in cash, net of debt and cash. The impact of the acquisition on Amdocs' non-GAAP earnings per share is expected to be modestly accretive in fiscal 2010. The impact on GAAP results in fiscal 2010 will not be known until after Amdocs completes the purchase price accounting for the acquisition. Amdocs may incur a one-time acquisition-related expense in the quarter ending March 31, 2010 to account for certain costs related to the acquisition.
OpenMarket is a leading mobile transaction hub in the United States. OpenMarket provides a comprehensive set of payment, messaging and emerging services to meet mobile business needs. From the largest consumer brands to the smallest new digital content ventures, OpenMarket empowers businesses to expand their marketing initiatives and strengthen customer relationships by leveraging the mobile channel. OpenMarket provides the most direct mobile operator connections in the US market today with rapid global expansion plans. OpenMarket is a business of Amdocs. For more information, please visit www.openmarket.com.
Amdocs is the market leader in customer experience systems innovation, enabling world-leading service providers to deliver an integrated, innovative and the intentional customer experience (tm) - at every point of service. Amdocs provides solutions that deliver customer experience excellence, combining the software, service and expertise to help its customers execute their strategies and achieve service, operational and financial excellence. A global company with revenue of $2.86 billion in fiscal 2009, Amdocs has approximately 18,000 employees and serves customers in more than 60 countries around the world. For more information, visit Amdocs at www.amdocs.com.
Amdocs Forward looking statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business segments it serves, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future, however the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2009, filed on December 7, 2009 and our Form 6-K for the first quarter of fiscal 2010 filed on February 8, 2010.
About MX Telecom
MX Telecom is the leading global aggregator providing the connectivity and infrastructure, and facilitating payment and digital content delivery, to enable businesses to take advantage of mobile technology. Founded in 2000, MX Telecom helps hundreds of companies to implement mobile services around the world, including national broadcasters, government agencies, major brands and entrepreneurial ventures.
Tel: +44 207 343 2519
Onsite contact at International CTIA Wireless:
Weber Shandwick for OpenMarket
Tel: + 410-236-9837