DST Systems Inc. said Tuesday that it has closed the sale of its video broadband, cable and direct-broadcast satellite customer-care and billing business to Amdocs Ltd.
The former DST unit has approximately 700 employees, and it recorded operating revenues of $183 million for 2004, including $49 million representing intersegment revenue for output services. In the first quarter of 2005, operating revenues were $45 million, including $13 million representing intersegment revenue for output services.
The deal was made for $237.8 million in cash.
The new division will continue to be led by DST Innovis CEO Peter Nault and the current management team, with some members from Amdocs joining the management team in order to facilitate a smooth transition.
“DST Innovis adds strategic value to Amdocs as a result of its proven expertise in the broadband industry, strong existing relationships with industry leaders, significant market share in the United States and leading technology assets,” Amdocs CEO Dov Baharav said in a prepared statement.
“DST Innovis' capabilities complement Amdocs’ existing strength in telecommunications and allow us to take advantage of the opportunity presented by the broadband industry,” Baharav added. “As a result, Amdocs will be in a unique competitive position to offer the most comprehensive set of solutions to help broadband media and satellite companies transition to integrated customer management, or ICM, which has become an imperative for companies across the entire communications-service-provider spectrum.”