Amdocs has completed the acquisition of Bridgewater Systems Corporation. The transaction is valued at approximately CAD$211 million, or CAD$139 million net of Bridgewater’s cash as of June 30, 2011.
“This strategic acquisition will enable service providers to completely redefine the real-time data experience and maximize the return on their network investments,” said Brian Shepherd, group president for Amdocs. “We are delighted to welcome Bridgewater’s highly innovative, skilled professionals to Amdocs as we continue expanding our market-leading CES portfolio.”
“Following this acquisition, service providers will be able to benefit from data experience solutions based on a pre-integrated combination of Amdocs’ leading convergent charging technology and Bridgewater’s advanced policy control capabilities that address the increase in demand for high-bandwidth services and the exponential growth of smartphones and other connected devices,” said Ed Ogonek, President and CEO for Bridgewater.
“To successfully monetize their networks and enable a move to value-based pricing, service providers need to integrate their charging and policy systems,” said Ari Banerjee, senior analyst at Heavy Reading. “Standalone policy management provides an optimized network but not the most profitable one, while charging by itself provides monetization but does not enforce network knowledge. Successful network monetization needs these two systems to work together, which requires significant integration between the business support systems (BSS) and policy control systems. With the Bridgewater acquisition, Amdocs will be positioned to offer a pre-integrated policy management and charging solution to drive service providers’ data revenue.”
Amdocs does not expect a material impact from the acquisition of Bridgewater on fiscal year 2011 or fiscal year 2012 non-GAAP earnings per share, which excludes acquisition related costs and equity-based compensation expense, net of related tax effects. The impact on GAAP results will be finalized after Amdocs completes the purchase price accounting for the acquisition. Amdocs may incur acquisition-related expense in fiscal 2011 to account for certain costs related to the acquisition. In addition to the product and solution synergies, Amdocs and Bridgewater also share numerous top-tier customers, including Bell Mobility, Sprint and Telstra.