Amdocs Enters into Definitive Agreement on Bridgewater Systems Acquisition

Amdocs (NYSE: DOX), the leading provider of customer experience systems, announced on June 23, 2011 that it has entered into a definitive agreement to acquire all of Bridgewater Systems’ (TSX: BWC) (“Bridgewater”) outstanding common shares for CAD$8.20 per share in cash pursuant to a plan of arrangement that is subject to Bridgewater’s shareholder approval and customary closing conditions, including certain regulatory approvals.

 

The transaction is valued at approximately CAD$211 million, or CAD$128 million net of Bridgewater’s cash as of March 31, 2011. The Boards of Directors of Bridgewater and Amdocs have each unanimously approved the transaction which, subject to the satisfaction of the conditions to the plan, is expected to be completed within 90 days.

 

With the acquisition of Bridgewater, a provider of policy, subscriber management and network control solutions for mobile and convergent service providers, Amdocs expects to further expand its Customer Experience Systems (CES) portfolio with sophisticated data experience management capabilities.

 

Service providers are faced with an evolution from unlimited data plans to personalized value-based pricing and charging. This acquisition would allow Amdocs to support a wide variety of such use cases. For example, a family could share a single, consolidated plan across their iPhone (on a 3G network), iPad (on a 4G network), and home broadband connection, all at preferred bandwidth speeds.

 

The definitive agreement prohibits Bridgewater from soliciting alternative transactions and provides for the payment of a termination fee in certain circumstances. 

 

TLD