Amdocs Acquires MX Telecom - Analyst Blog

Amdocs Corp. (DOX) recently completed the acquisition of MX Telecom Ltd, a leading mobile payment and messaging aggregator. The transaction is aimed to boost up Amdocs’ OpenMarket business that provides a state-of-the-art mobile transaction hub. MX Telecom provides infrastructure and connectivity
for mobile payment and digital content delivery.

Amdocs has taken a strategic decision to globally expand its OpenMarket business in order get an initial foothold in the gradually increasing mobile payment market. Under these circumstances, acquisition of MX Telecom makes sense. MX Telecom has operations in the U.S., Europe, and Australia. The merged entity will provide a hosted platform to extend mobile payment and messaging capabilities through an integrated network and product portfolio.

Under the terms of the purchase agreement, Amdocs paid approximately $104 million in cash, net of debt and cash. Management declared that the impact of this acquisition on Amdocs' non-GAAP earnings per share is expected to be modestly accretive in fiscal 2010. The company may also incur a one-time
acquisition related cost in the ongoing quarter.

Amdocs benefits from the long-term trend toward information technology (IT) outsourcing. The firm’s principle marketing efforts continues to be targeted towards leading companies in the communications sector. By offering a “total systems solution," consisting of its integrated customer management products along with its specialized services, Amdocs has been able to steadily gain market share from its competitors.

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