Amdocs today announced that it has entered into a definitive agreement to acquire Openet, a world-leading provider of 5G charging, policy and cloud technologies. The two companies are excited by the opportunity to bring 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.
Openet is a privately-owned company headquartered in Ireland, with offices in the US, Malaysia and Brazil and a global customer base.
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(1). 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. Further information relating to this acquisition will be provided on Amdocs’ earnings conference call for the third quarter of fiscal 2020 on August 5, 2020 at 5:00 p.m. Eastern Time.
The transaction consideration is denominated in Euro and translated for convenience to USD using the current exchange rate. The final amount in USD will be known at the closing of the transaction.