2023-05-10 16:44:05 ET
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Amdocs ( NASDAQ: DOX ) will buy the service assurance business of TEOCO for about $90 million cash, the software company said on Wednesday.
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Amdocs said additional consideration may be paid later if certain performance metrics are achieved.
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"The move will enhance Amdocs' offering by bringing key assurance expertise and capabilities in-house, enabling us to offer truly end-to-end service orchestration," Amdocs Management Limited CEO Shuky Sheffer said.
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Revenue from TEOCO is expected to be immaterial in fiscal 2023 and expected to add ~0.5% to total revenue in fiscal year 2024, the company stated.
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The impact on GAAP diluted EPS will not be known until after completing the purchase price allocation.
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The deal's impact on the company's non-GAAP diluted EPS is expected to be neutral in 2023 and 2024.
For further details see:
Amdocs snaps up service assurance business of TEOCO for $90M cash