Wednesday, November 6, 2013

Amdocs Acquires Celcite for $129M; 2014 Expected Revenues (w/Actix):$68-103M

Amdocs continues to expand its offering in the network optimization space - much close to the IP data plane compared to its legacy products.

The BSS/OSS vendor announced ".. it has entered into a definitive agreement to acquire substantially all the assets of Celcite Management Solutions LLC [see "Celcite Updates SON with Responsibility Metrics and Accelerated Load Balancing" - here]  for approximately $129 million in cash .. Additional consideration may be paid later based on the achievement of certain performance metrics".

"The acquisition of Celcite builds upon and enhances the recent acquisition of Actix [see "Amdocs Acquires Actix ($120M) to Provide Geo-located Network Information" - here], and demonstrates Amdocs’ continued commitment to its network software and services strategy. By combining Actix’s market leading products with Celcite’s comprehensive network management and Self Optimizing Networks (SON) services and offering capabilities, Amdocs will be able to offer service providers comprehensive equipment-agnostic optimization solutions".

During its Q4 2013 earning call, Amdocs CEO Eli Gelman [pictured] said that "Combined, we expect Actix and Celcite to contribute between 2% to 3% of our full year revenue outlook in fiscal 2014 and drive modest earning accretions" (see "Amdocs Limited Management Discusses Q4 2013 Results - Earnings Call Transcript", by SeekingAlpha - here). Based on 2013 revenues of $3.3B and expected "organic growth outlook of roughly 2% to 5%" for 2014, this translates into $68-103M for both acquisitions.

See also - "[Guest post]: Preventing Conflict in Self-Optimizing Networks"- here.

"In addition, Amdocs will be expanding its CES (Customer Experience Systems) portfolio with quality-of-service (QOS) focused, geo-located network data that will drive a variety of optimization use cases. The acquisition will position Amdocs as the first supplier to offer customer experience-driven network optimization software and services based on a holistic view of the customer experience across all domains"

See "Amdocs Has Signed a Definitive Agreement to Acquire Celcite, a Leading Provider of Network Management and Self Optimizing Network (SON) Solutions" - here.

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