Openet, a privately-owned company headquartered in Ireland, with a global customer base, provides 5G charging, policy, and cloud technologies. Software service provider Amdocs has now found in Openet an opportunity to bring its open and network-centric technologies to Amdocs’ 350+ service provider customers worldwide.
This acquisition is expected to help Amdocs to succeed in the wave of 5G advancements around cloud, edge compute, IoT, and new customer experiences.
According to Joe Hogan, Openet Founder and CTO, the company along its 20-year journey has built a business on new 5G products that are recognized worldwide for their innovation and modern open, cloud-native architecture.
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.
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.
“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. “The Openet solutions complement our portfolio and this acquisition is part of our mission to accelerate the industry’s move to the cloud.”
“We are excited to join Amdocs, with whom we have been alongside at customers for many years, and help bring fast value to service providers’ 5G plans. It is truly a momentous day for Openet and for all of our stakeholders,” said Niall Norton, Openet CEO. “Given the strong momentum of our business this is an optimal time to be joining Amdocs. The caliber, resources and reach of Amdocs will bring significant and widespread opportunities across each of our disciplines.”