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Amdocs Acquires jNetX, A Leading Provider in the Service Delivery Platform (SDP) Market

by Guy J Kewney | posted on 27 October 2009


October 27, 2009 - Amdocs (NYSE: DOX) - Acquisition accelerates Amdocs’ position in SDP; enables service providers to harness the capabilities of converged networks, IT and web in order to deliver rich, next-generation services.

Amdocs, the leading provider of customer experience systems, today has announced the acquisition of jNetX, a privately-held service delivery platform (SDP) provider, for $50 million net of debt and cash, subject to post closing adjustments. This acquisition accelerates Amdocs’ position in the SDP market by combining jNetX’s industry leading offering with Amdocs’ existing customer experience solutions and service delivery capabilities. For perspective, the SDP market is estimated to grow at a 14% CAGR to $6 billion by 2013, according to a leading industry analyst firm (Analysys Mason, August 2009).

Today, service providers are seeking to transition their businesses from predominantly subscription-based access services to include rich content, applications, and other next-generation offerings. The combination of Amdocs and jNetX products will allow service providers to expose both Telecom and IP components in the network to offer convergent network, IT and Web-based services to all of their customers. This approach will benefit customers by enabling faster time-to-market and the monetisation of next-generation services, and will differentiate Amdocs from most other SDP vendors which support next generation services solely on IP-based networks.

“jNetX is a true innovator and has taken a different technical approach with its Java-enabled convergent service platform. This approach has provided greater value to service providers and helped jNetX achieve a strong position in the SDP marketplace,” said Jim Liang, senior vice president strategy and corporate development for Amdocs. “Today’s acquisition accelerates that value by not only offering a unique technological combination, but by wrapping that technology with Amdocs’ deep industry knowledge and leading consulting and delivery capabilities.”

The combination also provides strategic enhancements to the Amdocs CES Portfolio as it:

  • Enhances Amdocs’ convergent charging offering by providing scalable and robust service control and service brokering capabilities;
  • Delivers closer integration with the Amdocs App Store to expose network services to developers;
  • Provides a holistic service delivery framework that enables a quicker launch time for new services.

  • “One of the biggest challenges with this new, rapid service delivery model has been to ensure that services can be efficiently provisioned and properly monetised through real-time charging mechanisms,” said Gary Miles, CEO of jNetX. “By incorporating the jNetX carrier-class service platform into the CES suite, Amdocs extends its market leading offering providing a consolidated OSS, BSS and SDP solution for consistent service creation, management, delivery, charging and customer care.”

    In addition to the product synergies, Amdocs and jNetX share a number of top tier customers, including Vodafone Group, British Telecom and Mobilkom. The combination will benefit customers as they seek to enhance the customer experience and become an active participant in the emerging Telco-Web eco-system.

    Amdocs does not expect a material impact from the acquisition of jNetX on fiscal year 2010 non-GAAP earnings per share, which excludes acquisition related costs and equity-based compensation expense, net of related tax effects. The impact on GAAP results will be finalised after Amdocs completes the purchase price accounting for the acquisition.

    About Amdocs

    Amdocs is the market leader in customer experience systems innovation, enabling world-leading service providers to deliver an integrated, innovative and intentional customer experienceTM at every point of service. Amdocs provides solutions that deliver customer experience excellence, combining the software, services and expertise to help its customers execute their strategies and achieve service, operational and financial excellence. A global company with revenue of $3.16 billion in fiscal 2008, Amdocs has approximately 17,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at www.amdocs.com


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