After spending the majority of the 2010s embroiled in a patent squabble, the acquisition seems a surprising yet fitting conclusion to pairs’ story
On Friday, Amdocs announced that it is acquiring digital BSS company Openet for the sum of around $180 million, with the deal set to close before the end of the year.
“We have been on a 20-year journey in Openet to build a business of which we can all be proud,” said the CTO of Openet, Joe Hogan. “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.”
The deal will give Amdocs some additional clout in the BSS department, with Openet supplying charging, policy, and data management software to major operators around the world, including Vodafone, AT&T, and T-Mobile.
That said, exactly how much profit Openet will carry with it to Amdocs is seemingly fairly limited, with the latter saying that the acquisition is expected to have a neutral effect on their earnings per share for the upcoming financial year.
This deal is particularly interesting when considering the icy history between the two companies. Back in 2010, Amdocs accused Openet of infringing upon some of its patents and the resulting patent dispute rolled on for eight years. Openet was ultimately required to pay some licence fees to the Israel-based software company.
This is not the first time Amdoc’s has made a significant acquisition to boost its BSS portfolio. Back in 2015, Amdocs acquired Comverse’s BSS business units for $272 million, looking to take advantage of the growing innovation in LTE technologies.
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