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ST. LOUIS - November 5, 2008 - Amdocs (NYSE: DOX), the leading provider of customer experience systems, today announced it has signed a definitive agreement to acquire Changing Worlds Ltd. ("ChangingWorlds" ), a privately-held provider of personalization and intelligent portal solutions for mobile service providers. Under the terms of the agreement, Amdocs has agreed to acquire all of ChangingWorlds' shares for $60 million in cash, net of cash on hand, subject to post-closing adjustments. Additional consideration may be paid later based on the achievement of certain performance metrics. The acquisition is subject to conditions customary to such transactions, and is expected to close during Amdocs' fiscal quarter ending December 31, 2008.
ChangingWorlds' technology, combined with the Amdocs CES portfolio, will enable better customer experiences by allowing end users to quickly get relevant information based on what they use most, making it easier to navigate the Internet on their phones and reducing the time they spend looking for content. ChangingWorlds' technology currently addresses mobile devices, and Amdocs intends to expand the technology to three screens (mobile, PC and television) to personalize the customer experience across all touch points. ChangingWorlds and Amdocs share several customers including Sprint, the Vodafone Group and Telefonica O2. "Sprint is committed to delivering the best possible customer experience across a wide range of data services, including Internet browsing," said Kevin Packingham, senior vice president of product and technology development for Sprint. "Sprint and Amdocs have worked together for years on a number of important projects designed to enhance the customer experience. ChangingWorlds has been integral to our Sprint Web offering and provides the technology and expertise that will help us continue to deliver enhanced and personalized Internet services."
"Personalization is a cornerstone of Amdocs' strategy to offer Customer Experience Systems and ChangingWorlds is a recognized global expert in this area," said Dov Baharav, chief executive officer of Amdocs Management Limited. "ChangingWorlds' dynamic portal offerings surpass the traditional 'one- size-fits- all' approach, and no single vendor can match its range and sophistication of personalization services."
ChangingWorlds' patented technology automatically builds subscriber profiles based on user behavior and usage patterns that require no user input or action to make finding relevant content faster and requiring less clicks. For example, a sports enthusiast will see the link to latest information about his favorite football team on his home page, while a classical music fan will see the link to the upcoming concerts in his area.
"Amdocs and ChangingWorlds recognize the power of the customer experience and the potential for service providers to further exploit their place in the digital value chain," said David Moran, chief executive officer of ChangingWorlds. "Both Amdocs and ChangingWorlds will continue to aggressively execute on the shared vision of enabling service providers to offer the most compelling customer experience, to grow revenue from data services and retain customers."
The impact of the acquisition on Amdocs' non-GAAP earnings per share is expected to be neutral in fiscal 2009. The impact on GAAP results will be finalized after Amdocs completes the purchase price accounting for the acquisition. Amdocs may incur a one-time acquisition-related expense in the quarter ending December 31, 2008 to account for certain costs related to the acquisition.
About Amdocs Customer Experience Systems (CES) Amdocs CES is an integrated portfolio that delivers the operating environment service providers need to transform from providers of utility voice, data and video services into purveyors of the digital lifestyle. Amdocs CES allows providers to deliver an optimal customer experience-personalized, participatory and timely across any service, location and device. The Amdocs CES portfolio leverages Amdocs business process best practices based on real-world scenarios, and transcends traditional business support systems (BSS), operations support systems (OSS) and service delivery platforms (SDPs) to enable service providers to address both current and emerging customer experience business processes. Amdocs' unique business model focuses on enabling its customers to create differentiation and build brand, loyalty, profitability and competitive leadership.
About Amdocs Amdocs is the market leader in customer experience systems innovation, enabling world-leading service providers to deliver an integrated, innovative and the intentional customer experienceTM - at every point of service. Amdocs provides solutions that deliver customer experience excellence, combining the software, service and expertise to help its customers execute their strategies and achieve service, operational and financial excellence. A global company with revenue of $ 3.16 billion in fiscal 2008, Amdocs has more than 17,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at www.amdocs.com.
About ChangingWorlds ChangingWorlds is the global expert in the personalization of Mobile Internet data and the creation of in-depth subscriber intelligence for mobile operators. Since its inception, the company has championed and pioneered the need for the intelligent delivery of personalized content to ensure the success of the Mobile Internet and associated services. These efforts have proven successful and today more than 45 mobile operators worldwide have implemented the ClixSmart Personalization and Mobile Internet Platform solution. ChangingWorlds has continued to blaze the trail for personalized mobile content discovery, delivering innovative personalization solutions for mobile portal navigation, mobile search, mobile advertising, and content recommendations both on and off- deck. ChangingWorlds' suite of personalization solutions provides targeting and personalization technology that accelerates content discovery and individualizes the user experience of the Mobile Internet. Results from implementations of the ClixSmart Personalization solution, for example, have shown a significant increase of Mobile Internet ARPU and a 30 percent increase in Mobile Internet traffic.
ChangingWorlds' customer base worldwide includes Sprint, Vodafone Global, the O2 Group, T-mobile, TeliaSonera, CSL Hong Kong and Celcom Malaysia.
Amdocs Forward-Looking Statement This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business segments it serves, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future, however the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2007, filed on December 3, 2007, and in our quarterly 6-K furnished on February 11, May 6 and August 11, 2008.
Media Contact: Amdocs Holly Rossetti Amdocs Tel: + 44 207-343-2519 E-Mail: holly.rossetti@amdocs.com
Michael Lane Weber Shandwick Tel: + 1 917-450-7387 E-Mail: mlane@webershandwick.com Amdocs 1390 Timberlake Manor Parkway Chesterfield, MO 63017 USA www.amdocs.com +1-314-212-7000tel +1-314-212-7500fax
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