Amdocs to Acquire MYCOM OSI in Strategic Growth Move to Assure 5G-Powered Smart World and Monetize New Generation of Intelligent Services
25 May 2022 - 6:05AM
Amdocs (NASDAQ: DOX), a leading provider of software and services
to communications and media companies, today announced 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 broad 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 subscription-based SaaS.
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.
Supporting Resources
- Find out more about MYCOM OSI
- Keep up with Amdocs news by visiting the company’s website
- Follow us on Twitter, Facebook, LinkedIn and YouTube
About AmdocsAmdocs 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
StatementThis 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.
Media Contacts
Michael YoudsAmdocs Public RelationsTel: +44 7855 827 038Email:
michael.youds@amdocs.com
Holly AbbottBabel PR for AmdocsTel: +44 (0)7527 521057 Email:
amdocs@babelpr.com / holly.abbott@babelpr.com
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