Amdocs has reached an agreement to buy digital business support systems (BSS) vendor Openet for $180 million in cash. The deal, which is subject to closing conditions and the usual regulatory hurdles, is expected to close before the end of the fourth quarter in fiscal 2020.
Openet, which was founded 20 years ago by current CTO Joe Hogan, provides 5G charging, policy, data management software and cloud technologies to customers such as AT&T, Liberty Global, Orange, Vodafone and T-Mobile. On Monday, Dublin, Ireland-based Openet announced a partnership with Salesforce to reduce customer care costs while improving customers' experience. Privately-held Openet also has offices in the U.S., Malaysia and Brazil. Prior to the deal, Openet competed against Amdocs.
RELATED: Openet strikes up a partnership with Salesforce to manage customer care queries
“We have been on a 20-year journey in Openet to build a business of which we can all be proud,” said Hogan, in a statement. “In recent years, we have built new 5G products which are recognized worldwide for their innovation and modern open, cloud-native architecture. We all look forward to the combined technology strengths of Openet and Amdocs creating new opportunities for service providers at this exciting time of 5G adoption.”
According to its website, Openet works with seven of the top-10 service providers in the world and four of the top-six service providers in Europe. Over the past two years, Openet has generated revenues of roughly $70 million per year.
“We are delighted the innovative Openet team is joining Amdocs. They bring world-class cloud-native capabilities, network pedigree, and deep 5G charging, policy and data management expertise,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited, in a statement. “The Openet solutions complement our portfolio and this acquisition is part of our mission to accelerate the industry’s move to the cloud.”
RELATED: Amdocs notches customer win with Orange Spain
St. Louis-based Amdocs has a long history of providing services to communication, media and financial firm. Amdocs, which posted $4.1 billion in revenue last year, has more than 350 service provider customers around the world.
OSS vendor Amdocs played a key role in helping AT&T develop its ECOMP orchestration and automaton platform, which was renamed Open Network Automation Platform (ONAP) when it was moved into the Linux Foundation.
Amdocs will provide more details on the deal during its third quarter earnings call on August 5 at 5 p.m. ET.