Comverse to Sell Business-Support Systems Assets to Amdocs -- Update

By Josh Beckerman 

Comverse Inc., which provides services and products to telecom companies, will sell substantially all of its business-support systems assets to Amdocs Ltd. for $272 million.

Comverse said the deal would allow it to focus on digital services.

Amdocs said the purchase would expand and diversify its customer base, particularly in the Asia Pacific, Latin America and Europe regions. Amdocs provides software and services for communications, media and entertainment customers.

Comverse, which posted total revenue of $477.3 million for the year ended Jan. 31, said its business-support systems unit had about $251 million in revenue.

The sale is expected to close before the end of September.

In late 2012, Comverse was spun off from Comverse Technology Inc., which was sold to Verint Systems Inc. in early 2013.

On April 15, Comverse said certain employees in its digital services unit would join Indian information-technology company Tech Mahindra Ltd. as part of a service agreement. In connection with the agreement, Comverse began a restructuring program expected to include a workforce reduction. The company also cut jobs in 2014.

Amdocs said Wednesday that revenue for the March 31 quarter rose 0.6% to $902.6 million. Net income rose to $116.3 million, or 74 cents a share, from $110.4 million, or 68 cents a share. The company reaffirmed its earnings guidance for the fiscal year ending in September.

Write to Josh Beckerman at [e-mail]

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