This acquisition positions Amdocs as the world’s leading provider of CRM to the communications industry and reinforces its leadership in delivering the industry’s most comprehensive portfolio of business software applications.
The acquisition of Clarify immediately expands our current offerings and market presence in communications CRM, said Avi Naor, President and Chief Executive Officer of Amdocs Management Limited. The acquisition represents an excellent opportunity for Amdocs, enabling us to immediately leverage the significant potential in the communications CRM market. With our complementary product sets, communications-specific functionality and powerful delivery capabilities, we offer the number one CRM solution for the communications industry.
The highlights of this acquisition are:
The strategic fit of Clarify into the Amdocs family making it the leading provider of best-in-class communications CRM worldwide, a growing market opportunity
The transaction will be accretive to cash earnings per share in fiscal year 2002 and thereafter
Clarify brings to Amdocs:
A carrier-grade CRM product set with high functionality that complements existing Amdocs CRM products
A highly knowledgeable team of CRM experts
A powerful market position based on leading products, an installed base of top tier carriers and a global reputation in the unique communications CRM space
Clarify’s business will be tightly integrated within Amdocs as part of Amdocs’ new CRM division and configured to Amdocs’ successful business model that combines service and solutions
Amdocs will retain its focus on communications, while utilizing a partner-centric approach to ensure continued support to Clarify’s enterprise customers
Naor continued, The acquisition of Clarify enhances our CRM capabilities in all areas
products, employees, customers and partners. Clarify has an outstanding set of CRM products, with strong communications-specific functionality, which we have already successfully integrated with Amdocs products at leading communications companies. We are retaining seasoned CRM specialists, helping us to accelerate our CRM offering. In addition, Clarify has a strong reputation in the CRM market, as the leading vendor to Tier 1 and Tier 2 communication service providers. Our combined CRM customer base positions Amdocs as the world’s most widely-installed communications CRM solution. We also look forward to working closely with Clarify’s broad group of partners, such as systems integrators, in continuing to offer Clarify products as a stand-alone offering.
Naor noted, For Amdocs, a software company focused on business applications for communications, Clarify’s capabilities are integral to our core business. Clarify’s products and people will form part of our new CRM division, and will be tightly integrated under the overall Amdocs management structure, R&D program, business strategy and operations. We are very confident that this approach, which we have used successfully in past acquisitions, will enable us to effectively leverage the important assets that Clarify brings to the table. Furthermore, the technological and functional compatibility of our products, together with the similarity of our corporate cultures, provide us with additional assurance that this transition can be completed smoothly and quickly.
Naor added, A key component in Amdocs’ success has been our disciplined focus on communications. Similarly, in integrating with Clarify, we will be focusing our CRM activities and resources on the communications market. At the same time, we will be true to our heritage of customer commitment by managing our enterprise relationships through our partners who have the focus, knowledge and capabilities to support these sectors. This approach enables us to retain our communications focus, while ensuring continued support for all Clarify customers.
Naor concluded, The acquisition also creates significant synergies and business opportunities. The CRM market has considerable potential. This is especially the case at this time in the communications industry, where service providers are very focused on retaining customers. Our enhanced CRM product set enables Amdocs to compete more effectively on communications CRM opportunities. The acquisition also creates reciprocal sales opportunities within the Clarify and Amdocs customer bases. In addition, there are service synergies. While continuing to work closely with partners, we will be applying Amdocs’ solution-based business model to our CRM projects. This will help ensure delivery for our CRM customers while also stabilizing revenue flows in this sector.
Under the terms of the acquisition, Amdocs will acquire Clarify for approximately $200 million in cash. The transaction will be accounted for by the purchase accounting method and is expected to be accretive to cash earnings per share in fiscal year 2002 and thereafter. As a condition of the sale in Europe, all necessary employee consultation requirements must be also be met. The acquisition, which is expected to close by the end of December 2001, is subject to customary regulatory approvals.
