Acquisition of UK-based company expands Amdocs’ network service assurance and monetization offering with cloud-native, intelligence-powered assurance solution suite to deliver seamless customer experiences
JERSEY CITY, NJ, May 24, 2022 (GLOBE NEWSWIRE) – Amdocs (NASDAQ: DOX), a leading provider of software and services to communications and media companies, announced today that it has entered into a definitive agreement to acquire MYCOM OSI, a UK-headquartered company providing SaaS-based cloud network and service assurance solutions to communications service providers globally.
The acquisition will expand Amdocs’ network portfolio to include end-to-end service and network orchestration by bringing key assurance capabilities to power the next generation of networks. MYCOM OSI’s award-winning service assurance suite comprises performance management, fault management and service quality management, leveraging artificial intelligence (AI) and machine learning (ML) to detect and predict anomalies and enable intent-driven closed loop operations through automated remediation and AIOps.
MYCOM OSI delivers 5G assurance applications and solutions to multiple customers with 5G networks, as well as serving wireline operator networks, which are becoming increasingly virtualized, containerized and software defined. MYCOM OSI’s cloud-native solutions leverage the benefits of the cloud such as scalability, cost and reliability, and support the converged network-cloud ecosystem.
“This is a strategic growth move that builds on our other recent successful acquisitions in the network and cloud space and executes on three of our core strategic pillars – intelligent network automation, 5G and cloud,” said Shuky Sheffer, President and Chief Executive Officer at Amdocs. “As the network and services of the 5G era become increasingly dynamic and complex, a holistic, end-to-end approach is key and can only be achieved with a powerful AI-backed assurance solution suite. That’s why we’re so excited to welcome the highly talented and dedicated MYCOM OSI team to Amdocs. ”
“MYCOM OSI has a track record of continuous innovation and helping service providers around the world predict and resolve network problems before they impact customers, while reducing operational costs through automation and AI,” said Andrew Coll, Chief Executive Officer at MYCOM OSI. “We’re excited to be embarking on the next chapter of our company story as part of the Amdocs family as we bring our combined expertise together under one roof. At a time of rapid transformation in the communications sector, the combined scale and deep domain expertise will create a unique and wide range of complementary and innovative solutions, such as closed-loop automation to help service providers in deploying 5G networks and services at scale. ”
MYCOM OSI is a privately-owned business that works with leading top-tier service providers worldwide. In addition to its London HQ, MYCOM OSI has offices in the US, France, UAE, India and Singapore. It was the first service assurance vendor to offer its applications on the public cloud as a SaaS subscription-based.
Amdocs’ Board of Directors has approved the transaction for a consideration of approximately $ 188 million in cash which, subject to the satisfaction of the conditions to closing, is expected to be completed in the fourth quarter of fiscal 2022. Revenue from MYCOM OSI is expected to be immaterial in fiscal 2022 and will add less than 1% to total revenue on an annualized basis.
The impact of the acquisition on Amdocs’ non-GAAP diluted earnings per share is expected to be neutral in the full fiscal years 2022 and 2023. Non-GAAP diluted earnings per share excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value and equity-based compensation expenses, net of related tax effects.
The impact on GAAP diluted EPS will not be known until after Amdocs completes the purchase price allocation.
Amdocs helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers’ innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end user and enterprise customers. Our 30,000 employees around the globe are here to accelerate service providers’ migration to the cloud, enable them to differentiate in the 5G era, and digitalize and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $ 4.3 billion in fiscal 2021. For more information, visit 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 markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, 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 Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2021 filed on December 10, 2021, and our Form 6 -K furnished for the first quarter of fiscal 2022 on February 14, 2022 and for the second quarter of fiscal 2022 on May 24, 2022.
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