Amdocs deals for DST Innovis
The customer management sector underwent a spell of consolidation Tuesday as Amdocs announced a deal to acquire billing and customer care specialist DST Innovis for $238 million.
With DST Innovis in the fold, Amdocs will add several cable and satellite service providers to its customer base, including DirecTV, Comcast Cable and Cablevision Systems Corp. Amdocs has also scored broadband deals on its own. For example, it was selected in May to support SBC Communications' Project Lightspeed fiber project.
The combination will also give Amdocs more leverage to wield against competitors in the cable sector, including Convergys Corp. and CSG Systems Inc.
"The broadband media industry — which is undergoing tremendous change and dealing with increased complexity as it continues to converge with the telecommunications industry — represents a considerable opportunity for Amdocs," said Amdocs CEO Dov Baharav, in a statement.
As part of the deal, DST Output, a subsidiary of DST Innovis, will continue to provide electronic and print/mail services via a long-term contract with Amdocs. DST output will also serve as a preferred vendor of such services for Amdocs customers in the U.S.
Once the deal is closed, DST will operate as the Broadband Cable and Satellite division of Amdocs. Current DST Innovis CEO and President Peter Nault will lead the new division.
In DST Innovis, Amdocs will acquire a company that posted $233 million in revenues in fiscal 2004. DST employs about 700 people located primarily in Sacramento, Calif., and Charlotte, N.C.