Comverse to Divest BSS Business to Amdocs for Total Purchase Price of $272 Million
April 29 2015 - 4:00PM
Comverse (Nasdaq:CNSI) today announced it has reached a definitive
agreement to sell substantially all of its BSS business assets to
Amdocs (Nasdaq:DOX). The total purchase price is $272 million in
cash. The transaction is expected to close by the end of September
2015, subject to various closing conditions.
"Size and scale in BSS are critical to succeed in today's
increasingly consolidating telecommunications service provider
marketplace, while smaller, niche players face a more uncertain
future," said Philippe Tartavull, President and Chief Executive
Officer, Comverse. "The combination of Comverse's customer base
with Amdocs' BSS products and services creates new opportunities
for our clients and Comverse employees joining Amdocs. Now,
Comverse can focus exclusively on expanding our existing
significant global market leadership in the Digital Services arena,
and driving innovation in new segments of the IP communication
industry that are expected to grow significantly as CSPs and
enterprises take advantage of the rollout of 4G/Volte/LTE
services."
He added, "After we complete this transaction, Comverse will be
a profitable company, with an exceptionally strong balance sheet
and a large portfolio of NOLs. With recent steps we've taken to
secure a more advanced and flexible research and development
operation, as well as reducing operating costs, we believe Comverse
is very well positioned to become the leader in Digital Services
through both organic growth and M&A activity, all of which
should benefit our customers, employees and shareholders."
"As a result of this acquisition, Amdocs, with our more than
30-year industry experience, will be able to bring additional value
to Comverse's customers," said Eli Gelman, President and CEO of
Amdocs. "We look forward to providing our combined customer base
with a continued outstanding level of product innovation and
customer service, and strengthening Amdocs' position in key
emerging markets."
Comverse's BSS business unit generated approximately $251
million in revenue in the fiscal year 2014.
Conference Call
Comverse will hold a conference call to discuss this
announcement with the investment community on Thursday, April 30 at
8:30 am ET. The call can be accessed by dialing (678) 825-8369. A
live webcast of the call can be found on the company's investor
relations website (www.comverse.com/investors) under Events and
Presentations; a replay of the webcast will be available at the
same location beginning one hour after completion of the call.
About Comverse
Comverse empowers people to engage with each other, services,
and things as part of their multi-device, digital lifestyle. We
help service providers and enterprises deliver and monetize
innovative digital experiences through an award-winning portfolio
of software solutions, backed by expert services. Our solutions
touch more than two billion people through 450 service providers
and enterprises in 125+ countries. You can find us at
www.comverse.com
Forward-Looking Statements
Statements included or incorporated by reference in this press
release include "forward-looking statements." Forward-looking
statements include statements regarding the parties' obligations
under the Purchase Agreement and the TSA, and the anticipated
closing of the Asset Sale. In some cases, forward-looking
statements can be identified by the use of terminology such as
"may," "expects," "plans," "anticipates," "estimates," "believes,"
"potential," "projects," "forecasts," "intends," or the negative
thereof or other comparable terminology. By their very nature,
forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause actual
results, performance and the timing of events to differ materially
from those anticipated, expressed or implied by the forward-looking
statements in this Current Report. Such risks or uncertainties may
give rise to future claims and increase exposure to contingent
liabilities. These risks and uncertainties relate to (among other
factors) the effect of the pendency of the Asset Sale;
restructuring initiatives on the Company's business; risks
associated with foreign operations; satisfaction and performance by
the parties of the terms and conditions of the Purchase Agreement;
economic, industrial and competitive conditions; compliance with
applicable laws and regulations; and additional risks described in
the sections entitled "Forward-Looking Statements" and Item 1A,
"Risk Factors" and elsewhere in the Company's most recent Annual
Report on Form 10-K, or in subsequently filed periodic, current or
other reports with the U.S. Securities and Exchange Commission. The
Company undertakes no commitment to update or revise any
forward-looking statements except as required by law.
CONTACT: Michael Grossi
Comverse, Inc.
michael.grossi@comverse.com
+1-781-224-8030
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