By Josh Beckerman
Comverse Inc., which provides services and products to telecom
companies, will sell substantially all of its business-support
systems assets to Amdocs Ltd. for $272 million.
Comverse said the deal would allow it to focus on digital
services.
Amdocs said the purchase would expand and diversify its customer
base, particularly in the Asia Pacific, Latin America and Europe
regions. Amdocs provides software and services for communications,
media and entertainment customers.
Comverse, which posted total revenue of $477.3 million for the
year ended Jan. 31, said its business-support systems unit had
about $251 million in revenue.
The sale is expected to close before the end of September.
In late 2012, Comverse was spun off from Comverse Technology
Inc., which was sold to Verint Systems Inc. in early 2013.
On April 15, Comverse said certain employees in its digital
services unit would join Indian information-technology company Tech
Mahindra Ltd. as part of a service agreement. In connection with
the agreement, Comverse began a restructuring program expected to
include a workforce reduction. The company also cut jobs in
2014.
Amdocs said Wednesday that revenue for the March 31 quarter rose
0.6% to $902.6 million. Net income rose to $116.3 million, or 74
cents a share, from $110.4 million, or 68 cents a share. The
company reaffirmed its earnings guidance for the fiscal year ending
in September.
Write to Josh Beckerman at josh.beckerman@wsj.com
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