Amdocs to Acquire MYCOM OSI in Strategic Growth Move to Assure 5G-Powered Smart World and Monetize New Generation of Intelligent Services
Via GlobeNewswire for Amdocs
May 24, 2022
JERSEY CITY, N.J. -- 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.
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