Monday, July 4, 2005

Amdocs Acquires DST Innovis for Cable Broadband Billing

Amdocs has acquired DST Innovis, a leading provider of customer care and billing solutions to broadband media companies, for approximately $238 million from DST Systems. DST Innovis provides billing and customer care solutions to the largest cable broadband and satellite companies, including DIRECTV, Comcast and Cablevision, supporting about 37 million subscribers worldwide. The company has about 700 employees and generated revenues of approximately $233 million in fiscal 2004. Amdocs said the acquisition propels it into a leadership position in the broadband media marketplace, which includes cable and satellite companies.

DST Innovis will operate as the Broadband Cable and Satellite division within Amdocs and will have global responsibility for the broadband media market. The new division will continue to be led by Peter Nault, chief executive officer and president of DST Innovis, and the current management team, with some members from Amdocs joining the management team to facilitate a smooth transition.

"Today, cable broadband and satellite service providers are offering 'triple play' service bundles that include voice, data, and video, as well as bundles of personalized, high-value services to help grow stronger, more profitable customer relationships," said Mr. Nault of DST Innovis. "Many of those providers are seeking to deepen these customer relationships in different ways, including adding wireless or wireline services to their portfolio, which further contributes to increasing complexity in the business."

Amdocs has also signed a long-term agreement with DST Output, by which it will continue to support the printing and mailing of bills for the DST Innovis customer base. Under the terms of this agreement, DST Output will be a preferred vendor of billing print and mail for projects that combine those services with billing support, and is expected to be selected as the provider of these services for additional Amdocs North American customers.

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