Amdocs has entered into a definitive agreement to acquire all of Bridgewater Systems in a transaction valued at approximately $215 million.
In announcing the deal, which could be valued at $130 million, net of Bridgewater's March 31 cash position, the parties said the transaction would allow Amdocs to offer an expanded portfolio of products and cutting edge technologies for managing customer experiences and services. Bridgewater is a provider of policy, subscriber management and network control solutions for mobile and convergent service providers
"This acquisition would build on Amdocs' leadership in delivering innovative solutions that change market paradigms," noted Amdocs group president Brian Shepherd in a statement. "It is a continuation of our strategy to support service providers as they seek to transform their businesses in anticipation of new market opportunities like 4G and machine-to-machine, and in response to clear threats, such as the data explosion."
In addition to product and solution synergies, Amdocs and Bridgewater share numerous customers, including Bell Mobility, Sprint and Telstra.
The two companies noted in the announcement that several key shareholders, which collectively hold approximately 29.7% of the outstanding common shares of Bridgewater, as well as the directors and senior officers of Bridgewater, representing another 5.6% of the common shares of Bridgewater, have agreed to vote in favor of the deal. A final deal is expected to be completed within 90 days.
"As the market leader in customer experience systems, Amdocs has an excellent reputation for delivering tangible value to service providers worldwide," said Ed Ogonek, president and CEO, Bridgewater in a statement. "The combination of Bridgewater's policy and subscriber data management portfolio with Amdocs CES portfolio will create a unique offering that would further extend Amdocs industry leadership, and deliver innovative solutions for service providers as they seek to transform their networks, improve customer loyalty and monetize their data services."