Amdocs, an Israeli-founded software and communications multinational, is set to acquire a British software company for about $188 million to bolster its 5G capabilities, the company announced Wednesday.
Amdocs said it entered into a definitive agreement to purchase MYCOM OSI, a London-headquartered company providing software-based cloud network and service assurance solutions to global communications service providers. The acquisition, the company said, will expand its network portfolio “to include end-to-end service and network orchestration by bringing key assurance capabilities to power the next generation of networks.”
5G, the fifth-generation technology standard for wireless networks, brings the promise of greatly increased internet speeds (at least 10 times faster than the 4G currently in use in Israel) and better coverage and responsiveness. Countries around the world began deploying 5G in 2019. Israel began deployment in 2020 but still lags behind.
Amdocs was co-founded in 1982 by Boaz Dotan and South African-Israeli billionaire and philanthropist Morris Kahn to develop a billing software platform, later moving into software services for communications providers, media companies, and financial and digital enterprises. The company is now headquartered in Missouri and employs about 30,000 people worldwide. A public company traded on the Nasdaq, Amdocs posted revenue of $4.3 billion in the 2021 fiscal year.
MYCOM OSI, founded in 1989, now provides cloud-based software services multinational wireless service providers and transmission service providers. It began offering 5G assurance applications and cloud-native solutions to customers deploying 5G networks in recent years, delivering “the benefits of the cloud such as scalability, cost and reliability,” and supporting hybrid systems. The company has offices in the US, France, UAE, India, and Singapore.
Shuky Sheffer, president and CEO at Amdocs, said the acquisition was “a strategic growth move” that builds on Amdocs’s “core strategic pillars – intelligent network automation, 5G and cloud.”
“As the network and services of the 5G era become increasingly dynamic and complex, a holistic, end-to-end approach is key and can only be achieved with a powerful AI-backed assurance solution suite. That’s why we’re so excited to welcome the highly talented and dedicated MYCOM OSI team to Amdocs,” Sheffer said in a company statement.
Andrew Coll, CEO at MYCOM OSI, said the company was “excited to be embarking on the next chapter” as part of Amdocs to “bring our combined expertise together under one roof.
“At a time of rapid transformation in the communications sector, the combined scale and deep domain expertise will create a unique and broad range of complementary and innovative solutions, such as closed-loop automation to help service providers in deploying 5G networks and services at scale,” said Coll.
Amdocs said its board of directors approved the transaction for approximately $188 million in cash. The transaction is expected to close later this year.