Amdocs has acquired the mobile payments and messaging aggregator MX Telecom for approximately US$104 million in cash, net of debt and cash. MX Telecom will become part of Amdocs' OpenMarket, a business of Amdocs that operates a market leading mobile transaction hub, while the joint OpenMarket MX Telecom business will provide a hosted platform to extend mobile payment and messaging capabilities.
Jay Emmet, General Manager of OpenMarket, said, "This strategic acquisition expands OpenMarket's global footprint and substantially increases our market leadership in the rapidly growing mobile payments market that will extend well beyond messaging in the coming years. In addition, it strengthens our product portfolio with an extensive set of value-added services for merchants."
Alex Moir, Managing Director of MX Telecom, stated, "We are delighted to be joining forces with OpenMarket. OpenMarket's mobile payments platform is highly synergistic with MX Telecom. This acquisition will enable the combined organization to better serve our customers and accelerate our global growth plans. Our employees are proud of what MX Telecom has accomplished, and we look forward to continuing to shape the industry as part of the OpenMarket team."
The impact of the acquisition on Amdocs' non-GAAP earnings per share is expected to be modestly accretive in fiscal 2010. The impact on GAAP results in fiscal 2010 will not be known until after Amdocs completes the purchase price accounting for the acquisition. Amdocs may incur a one-time acquisition-related expense in the quarter ending March 31, 2010 to account for certain costs related to the acquisition.
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