Amdocs agreed to acquire Bridgewater Systems for C$8.20 per share in cash, valuing the company at approximately C$211 million. The offer represents an implied premium of 30% to Bridgewater's closing share price of C$6.33 and an implied premium of 33% to the 20-day volume weighted average trading price of C$6.17 on the Toronto Stock Exchange as at June 16, 2011.
Bridgewater Systems provides pre-integrated solutions for mobile and converged operators. Its portfolio includes Service Controller (AAA), Policy Controller (PCRF) and Home Subscriber Server (HSS), anchored by a common identity and device management system.
Amdocs offers business and operational support systems, service delivery platforms, and professional services for network operators. The company generated approximately $3.0 billion in revenue in fiscal 2010, Amdocs has over 19,000 employees and serves customers in more than 60 countries worldwide.
"Becoming part of Amdocs would enable us to accelerate our corporate growth strategy, centered around global expansion, enabling the transformation to next generation converged networks, portfolio and solution innovation, and leveraging our installed base," said Ed Ogonek, President and CEO, Bridgewater. "The natural synergies between the Bridgewater and Amdocs product and solution portfolios, coupled with Amdocs' extensive tier 1 customer base and global presence, would unleash innovative, policy-enabled customer experience solutions to service providers worldwide."
"This acquisition would build on Amdocs' leadership in delivering innovative solutions that change market paradigms. 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," said Amdocs Group President, Brian Shepherd.
The transaction is expected to close during the third quarter of 2011, subject to the satisfaction or waiver of various closing conditions.http://www.amdocs.com http://www.bridgewater.com
- The Bridgewater Home Subscriber Server (HSS) is the master repository in the LTE Evolved Packet Core that contains subscriber and device profile and state information, and supports authentication, authorization and mobility management functions in LTE. The Bridgewater HSS supports broad multi-vendor interoperability using standards-based interfaces with all major network equipment vendors. Fully compliant with 3GPP Release 8 standards, with interfaces and performance requirements designed and tested for multi-vendor environments, it supports standardized LTE and IMS interfaces.
- In December 2010, Verizon Wireless awarded a new four-year framework contract to Bridgewater Systems for products and services supporting its network expansion. The contract was valued at approximately US$ 56 million. Under the agreement, Bridgewater will provide mobile control solutions as well as maintenance and support services for all current and future 3G solutions. In addition, the agreement provides the framework for Bridgewater to deliver new products and services to support Verizon Wireless' ongoing network expansion across multiple access networks.
