Amdocs Enters Partnership for the Purchase of the Land for its Future Campus in Israel
07 December 2017 - 8:49AM
Amdocs (NASDAQ:DOX), a leading provider of software and services to
communications and media companies, today announced it has signed
an agreement with Union Group to partner for the purchase of the
land1 for its future campus in Ra’anana, Israel. The transaction
for the acquisition of the land is expected to be completed in the
near term upon satisfaction of customary closing conditions.
Union Group, privately-held, is active in various
business domains, with vast experience in developing and operating
real-estate properties in Israel and abroad. The partnership will
be able to benefit from Union Group’s strong expertise in
developing real-estate assets.
Amdocs looks to its future campus as an opportunity
to shape company culture and improve the experience and
productivity of its employees. The new campus will provide an
advanced, optimal working environment that can fully meet the needs
of Amdocs Israel and its employees, and support the company’s
future growth.
The total net investment that Amdocs expects to
make in connection with the purchase of the land and the
construction of the new campus is expected to reach up to $350
million over a period of four to five years, and is expected to be
financed by internal cash resources. As previously disclosed, this
investment includes incremental capital expenditure of up to $100
million in fiscal year 2018. Excluding this incremental capital
expenditure, Amdocs expects to generate free cash flow of roughly
$500 million in fiscal year 2018, of which it plans to return
approximately 100% to shareholders through its ongoing share
repurchases and dividend program for the full year. Beyond fiscal
2018, as a general long-term guideline consistent with our prior
messages, Amdocs expects to return a majority of free cash flow to
shareholders after adjusting for the investment in the campus,
subject to factors such as the outlook for M&A, financial
markets and prevailing industry conditions. Amdocs believes its
decision to build a new campus will be accretive to diluted
earnings per share over the long term.
1 Amdocs press release, 13 Sept 2017: Amdocs Signs an Agreement
to Purchase Prime Real-Estate in Ra’anana for its Future Campus
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About AmdocsAmdocs is a leading software and
services provider to the world’s most successful communications and
media companies. As our customers reinvent themselves, we enable
their digital and network transformation through innovative
solutions, delivery expertise and intelligent operations. Amdocs
and its 25,000 employees serve customers in over 85 countries.
Listed on the NASDAQ Global Select Market, Amdocs had revenue of
$3.9 billion in fiscal 2017.
For more information, visit Amdocs at www.amdocs.com.
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 this transaction and its impact on
Amdocs’ results in future periods. 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, 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 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, 2016 filed on December 12,
2016 and our quarterly 6-K form furnished on February 13, May 22
and August 14, 2017.
Contact: Matthew Smith Head of Investor
Relations Amdocs 314-212-8328 E-mail: dox_info@amdocs.com
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