Amdocs Acquires Qpass for $275 Million
TMCnet Contributing Editor
Signifying a melding of today’s network and content services markets, Amdocs, a provider of software and services to enable integrated customer management, has announced signing an agreement to acquire Qpass, a provider of digital commerce software and solutions.
Under the terms of the agreement, Amdocs (News - Alert) will acquire all of Qpass' shares of capital stock for approximately $275 million in cash. Through this acquisition, Amdocs hopes to enable its customers to create additional sources of revenue through the delivery of digital goods over multiple devices and various access methods.
Qpass has long acted as a channel between the content provider and the service provider by helping customers determine how to offer, manage, charge, and fulfill content products and services, playing a crucial role in enabling the value chain and monetizing digital content. Qpass has relationships with over 300 leading content providers. The combination of Qpass' business expertise and leading technology platform, and Amdocs' services and global reach, represents a unique value proposition to the communication and media industry.
“Service providers are working hard to adapt their networks and business models to take advantage of the growing content and services market,” said Dov Baharav, Chief Executive Officer of Amdocs Management Limited. “This transaction creates a unique combination that will help realize the transformation of service providers from carriers of voice and data services to dynamic retailers of ubiquitous, converged services and digital content.”
Amdocs currently works with 150 service providers -- including broadband cable, satellite, fixed access, and wireless service providers. In turn, Qpass works with some of the largest carrier groups globally, including Cingular (News - Alert), Sprint (News - Alert), and T-Mobile.
“Consumers have begun to expect higher levels of personalization and richer content via multiple electronic channels,” said Chase Franklin, CEO and founder of Qpass. “As the consumption of content and digital goods becomes mainstream, volume and complexity will increase significantly and the demand for additional services will grow. The merger with Amdocs will provide a comprehensive answer to help service providers support these increased demands.”
Under the terms of the acquisition, Amdocs will acquire Qpass, which is based in Seattle, WA with offices in London and Vienna, for approximately $275 million in cash. The closing of the acquisition is subject to regulatory approvals and other conditions customary to such transactions and is expected to occur in the quarter ended June 30, 2006.
Cindy Waxer is a Toronto-based freelance journalist specializing in business and technology. She has written for publications including TIME, Fortune Small Business, Business 2.0, Computerworld, Canadian Business, and Workforce Management. To see more of her articles, please visit Cindy Waxer’s columnist page.
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