CTIA Wireless — Amdocs today announced that it has acquired MX Telecom Ltd. MX Telecom is a mobile payments and messaging aggregator with operations in Europe, United States and Australia. Under the terms of the agreement, Amdocs is buying the company for approximately $104 million.
MX Telecom will become part of Amdocs’ OpenMarket, which operates a mobile transaction hub. The acquisition accelerates OpenMarket’s plans for global expansion into key markets. The joint OpenMarket MX Telecom business will provide a hosted platform to extend mobile payment and messaging capabilities through an integrated network and product portfolio.
“This strategic acquisition expands OpenMarket’s global footprint and substantially increases our market leadership in the rapidly growing mobile payments market that will extend well beyond messaging in the coming years,” said Jay Emmet, general manager of OpenMarket. “In addition, it strengthens our product portfolio with an extensive set of value-added services for merchants.”
“We are delighted to be joining forces with OpenMarket,” said Alex Moir, managing director of MX Telecom. “OpenMarket’s mobile payments platform is highly synergistic with MX Telecom. This acquisition will enable the combined organization to better serve our customers and accelerate our global growth plans. Our employees are proud of what MX Telecom has accomplished, and we look forward to continuing to shape the industry as part of the OpenMarket team.”
The impact of the acquisition on Amdocs’ non-GAAP earnings per share is expected to be modestly accretive in fiscal 2010. The impact on GAAP results in fiscal 2010 will not be known until after Amdocs completes the purchase price accounting for the acquisition. Amdocs may incur a one-time acquisition-related expense in the quarter ending March 31, 2010, to account for certain costs related to the acquisition.
