Amdocs has entered into a definitive agreement to acquire Openet. As part of this partnership, the two companies will work towards bringing Openet’s open and network-centric technologies to Amdocs’ 350+ service provider customers worldwide, helping them to succeed in the wave of 5G advancements around cloud, edge compute, IoT and new customer experiences.
Commenting on the development, Shuky Sheffer, president and chief executive officer, Amdocs Management Limited, said, “We are delighted the innovative Openet team is joining Amdocs. They bring world-class cloud-native capabilities, network pedigree, and deep 5G charging, policy and data management expertise. The Openet solutions complement our portfolio and this acquisition is part of our mission to accelerate the industry’s move to the cloud.”
Meanwhile, Niall Norton, CEO, Openet, said, “We are excited to join Amdocs, with whom we have been alongside at customers for many years, and help bring fast value to service providers’ 5G plans. It is truly a momentous day for Openet and for all of our stakeholders. Given the strong momentum of our business this is an optimal time to be joining Amdocs. The caliber, resources and reach of Amdocs will bring significant and widespread opportunities across each of our disciplines.”
“We have been on a 20-year journey in Openet to build a business of which we can all be proud. In recent years, we have built new 5G products which are recognized worldwide for their innovation and modern open, cloud-native architecture. We all look forward to the combined technology strengths of Openet and Amdocs creating new opportunities for service providers at this exciting time of 5G adoption,” added Joe Hogan, founder and CTO, Openet.
The Boards of Directors of Openet and Amdocs have approved the transaction for net consideration of approximately $180 million in cash which, subject to the satisfaction of the conditions to closing, is expected to be completed before the end of the fourth quarter of fiscal 2020. Openet has been generating in the past two calendar years revenue of roughly $70 million per annum. The impact of the acquisition on Amdocs’ non-GAAP diluted earnings per share is expected to be neutral in the full fiscal years 2020 and 2021, and accretive thereafter. 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.