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Amdocs $DOX Acquires Vindicia, Brite:Bill and Pontis for $260M

Amdocs $DOX Acquires Vindicia, Brite:Bill and Pontis for $260M

Amdocs (NASDAQ: DOX), a leading provider of customer experience software solutions for communications, entertainment and media service providers, said it has closed the acquisition of three privately owned companies – Vindicia, Brite:Bill and Pontis – in line with the company’s digital strategy. The three similarly priced companies were acquired for a combined amount of approximately $260 million in cash, including certain small earnouts. “Communication and media service providers, including those with over-the-top offerings, are transforming to capture the world of on-demand services and digital immediacy. When combined with business-driven analytics behind the scenes, this ensures a simplified, intuitive and engaging customer experience,” said Amdocs president and CEO Eli Gelman. “These acquisitions, alongside Amdocs’ existing platforms which include multi-channel, digital care and commerce, customer management and big data analytics solutions, position Amdocs as the market leader to help communication and media providers on their journey,” Gelman continued. Silicon Valley-based Vindicia is a market-leading provider of software-as-a-service (SaaS) subscription management and payment solutions. Vindicia makes it easy, flexible and frictionless for digital enterprises to onboard customers and process payments for digital content, over-the-top (OTT) entertainment, online subscriptions and on-demand services. Utilizing cloud-based operations for greater business agility, Vindicia’s ultra-fast time to market allows customers to easily experiment with various service offerings and pricing schemes to quickly introduce offers and attract new users. In addition, Vindicia’s advanced retention capabilities reduce user churn and increase top-line revenue for online service providers. Dublin, Ireland-based Brite:Bill‘s design-led, user-experience experts turn the customer bill into a unique, customer-centric engagement channel. Brite:Bill’s technology and services transform invoices into a personalized, digital, interactive billing experience in the channel of the customer’s choice. The invoice’s customized and engaging design reduces customer confusion around the bill, thereby cutting service provider costs around inbound inquiries, and also provides an engagement opportunity for service providers to promote new services. Tel Aviv-based Pontis, is a leading provider of contextual digital engagement solutions. Pontis’s real-time decisioning and learning technology enables service providers to offer their customers personalized contextual interactions relevant to where that individual customer is in their journey with the service provider. With Pontis, Amdocs is uniquely positioned to help service providers determine the next best action for customer engagement and then to offer the customer, across outbound and inbound channels, the most appropriate service at the right time and the right touch point. The impact of these acquisitions on Amdocs’ diluted non-GAAP earnings per share is expected to be neutral in fiscal 2017. Together, these acquisitions are expected to contribute 1.5% to 2.0% to total company revenue for the full fiscal year 2017. The Yellow Pages Years (1982-1990) Amdocs developed the first automated system for directory publishers, which put the customer, not the phone number, at the center. The 1984 breakup of AT&T led to Amdocs sealing a crucial win with Southwestern Bell (SBC) Yellow Pages, entering the US market and becoming the world leader in the Yellow Pages space. “I’ve always been proud of my long association with Amdocs, but it’s a special privilege to be at the helm as the company celebrates its 30th anniversary,” said Gelman. “In some aspects, Amdocs has changed beyond all recognition over the past three decades.”

“When I joined in 1987 as a team leader, managing two people, we were still a small, young company, focusing on one application/business area – Yellow Pages.” –Eli Gelman, Amdocs President & CEO
Amdocs Today “Today we’re a global company with over 250 service provider customers, offices in some 60 countries and a workforce of over 19,000 employees. But in one crucial area we have not changed: the determination of our employees to ensure the success of whatever project they’re working on, at any particular time,” Gelman concluded. Amdocs is a market leader in customer experience software solutions and services for the world’s largest communications, entertainment and media service providers. For more than 30 years, Amdocs solutions, which include BSS, OSS, network control, optimization and network functions virtualization, coupled with professional and managed services, have accelerated business value for its customers by simplifying business complexity, reducing costs and delivering a world-class customer experience. Last year Amdocs acquired a substantial majority of Comverse Inc.’s (NASDAQ:CNSI) business support systems (BSS) business unit assets for $272 million. Comverse was originally founded in Israel as Comverse Technology in 1997, becoming one of Israel’s flagship high-tech companies. Its BSS asset sale to Amdocs was part of a multi-step divestment plan. The Amdocs portfolio enables service providers to capture the world of digital immediacy by operating across digital dimensions to engage customers with personalized, omni-channel experiences. Amdocs and its more than 24,000 employees serve customers in over 90 countries. The company is headquartered in Chesterfield, Missouri. Amdocs had revenue of $3.6 billion in fiscal 2015, and has a current market capitalization of over $9 billion. HeritageBrand-Infographic_v09 Photo: Eli Gelman, Amdocs President & CEO.]]>

Permira, TCV, H&F-Owned Genesys to Buy Interactive Intelligence $ININ for $1.4B

Permira, TCV, H&F-Owned Genesys to Buy Interactive Intelligence $ININ for $1.4B

Interactive Intelligence was considering strategic alternatives. Genesys, headquartered in Daly City, south of San Francisco, Calif., is a world leading customer experience platform, with over 4,700 customers in 120 countries. On July 21, 2016, Genesys said it raised a $900 million investment from private equity firm Hellman & Friedman at a $3.8 billion valuation. The Permira funds, along with TCV, which acquired Genesys from Alcatel-Lucent (EN: ALU) for $1.5 billion in February 2012, continue to own a majority stake in the company. “Permira has been a tremendous partner over the past four years, and Hellman & Friedman’s investment in Genesys is further validation of both our strategy and execution. This investment will help accelerate our growth,” Paul Segre, chief executive of Genesys, said last month. Commenting on the acquisition of Interactive Intelligence, Segre now said, “This is a milestone transaction that combines industry-leading expertise and capabilities to enable lasting customer relationships, accelerate innovation and drive growth.” “Our combined product portfolio will provide the broadest set of transformative customer experience solutions optimized for customers of all sizes and sophistication levels, available both in the cloud and on-premise,” he added. Interactive Intelligence is a global leader of cloud services for customer engagement, communications and collaboration backed by over 150- pending patent applications, and more than 6,000 global customer deployments, with more than 2,000 employees worldwide. “The combination of Genesys and Interactive Intelligence provides a complete portfolio to address all market segments by combining Interactive Intelligence’s PureCloud, Cloud Communications-as-a-Service (CaaS), and Customer Interaction Center (CIC) with Genesys’ offerings,” said Don Brown, chairman, president and chief executive of Interactive Intelligence, In a sign of ongoing industry consolidation, the news comes only a day after New Yor-based global private equity firm KKR & Co. (NYSE: KKR) said it agreed to acquire fast-growing call-center software company Calabrio, based in Minneapolis, and a week after French call-center outsourcing company Teleperformance SA (EPA: RCF) agreed to acquire LanguageLine Solutions LLC from private equity firm ABRY Partners and minority equity owners, for $1.52 billion. Last month, Citrix Systems Inc. (NASDAQ: CTXS) agreed to merge its GoTo collaborative communications business with LogMeIn Inc. (NASDAQ: LOGM) in a deal valued at $1.8 billion. In May, Santa Clara, Calif.-based rival Avaya, a portfolio company of private equity firms Silver Lake and TPG Capital, engaged Goldman Sachs and Centerview Partners to explore a possible sale of the company. Avaya was originally spun off Lucent Technologies. A few days earlier, Israeli enterprise software solutions provider NICE Systems (NASDAQ: NICE) agreed to acquire Salt Lake City, Utah-based inContact Inc. (NASDAQ: SAAS), a leading provider of cloud contact center software, for $940 million. Other competitors and companies in related fields include Cisco (NASDAQ: CSCO), RingCentral (NYSE: RNG), ShoreTel (NASDAQ: SHOR), and private equity-backed Aspect Software. Both Genesys and Interactive Intelligence have developed best-in-class capabilities according to Gartner and other industry analysts. The combined company is expected to provide broader customer experience solutions for organizations of all sizes around the world. As a larger entity with increased scale, Genesys said it is “committed to accelerate innovation in the customer experience market, with more than $1.3 billion in revenue and annual R&D spend approaching $200 million.” Both cloud and on-premise product portfolios will continue to be supported and offered to the marketplace, with significant R&D investment across the full product portfolio. The deal is expected to close by the end of the year, subject to customary closing conditions, including regulatory approval and approval by Interactive shareholders. The deal has been unanimously approved by the two boards of directors. Brown, who owns approximately 17% of Interactive shares, has agreed to vote his shares in favor of the transaction. Genesys intends to fund the transaction through a combination of existing cash on hand and committed debt financing to be provided by Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs and RBC Capital Markets, which are serving as financial advisors to Genesys. Fried, Frank, Harris, Shriver & Jacobson LLP is serving as legal advisor to Genesys. Union Square Advisors LLC is serving as exclusive financial advisor to Interactive Intelligence, and Faegre Baker Daniels LLP is serving as legal advisor.]]>

PE Firm XIO Group to Acquire J.D. Power from McGraw Hill for $1.1B

PE Firm XIO Group to Acquire J.D. Power from McGraw Hill for $1.1B

XIO Group, a global alternative investments firm headquartered in London, said it will acquire J.D. Power, a world leader in consumer data and analytics, from McGraw Hill Financial Inc. (NYSE: MHFI) for a purchase price of $1.1 billion. The parties anticipate that the transaction will close during the third quarter of 2016, subject to customary closing conditions. Upon closing, XIO Group will support J.D. Power’s existing management team and employees in expanding the company’s market share, particularly in fast-growing Asian markets. J.D. Power, headquartered in Costa Mesa, California, is a world leader in consumer data and analytics that has been representing the voice of the consumer across industries since 1968. With 16 offices globally, J.D. Power’s more than 800 professionals provide transaction analytics and consumer insights for its blue-chip customer base. “J.D. Power has built a unique and trusted brand for over 40 years and we are extremely optimistic about the long-term prospects of the company,” said Joseph Pacini, Chief Executive Officer of XIO Group. “The world-class management team of J.D. Power has continuously developed data-driven solutions for its blue-chip customers in order to help them better respond to consumer preferences in increasingly competitive markets. We are committed to investing in the business to keep developing innovative solutions for the company’s customers as well as expanding its presence in international markets.” Carsten Geyer, Partner of XIO Group, continued, “The acquisition of J.D. Power ideally fits XIO Group’s strategy to invest in market-leading businesses in North America and Europe with untapped potential for global expansion.” “The entire team at XIO Group has appreciated getting to know J.D. Power’s President Fin O’Neill and his first-class team over the past few months. We are fully committed to dedicate our best resources behind their continued success,” stated Jean-Daniel Bertoncini, Director of XIO Group. “We are very pleased with this outcome. The transaction represents good value for our shareholders and positions J.D. Power for continued success,” said McGraw Hill Financial President and Chief Executive Officer Douglas L. Peterson. “J.D. Power is a phenomenal brand. We are proud of all of the contributions J.D. Power employees have made to this Company.” “We are thrilled that XIO Group recognizes the value of the J.D. Power brand and is committed to maintaining our core brand identity and values while helping us grow and expand,” said Fin O’Neill, President of J.D. Power. “We believe this next chapter will allow us to increase our insights across a broader spectrum of consumer interaction, a more extensive global footprint, and an increasingly digital, connected and mobile society.” The transaction is XIO Group’s first acquisition of a company headquartered in the United States, following previous acquisitions of industry-leading companies located in Germany and Israel in 2015. “The XIO Group team considers the acquisition of J.D. Power a landmark transaction for the firm in the North American market and a demonstration of the firm’s long-term commitment to the region,” the company said. Moelis & Company LLC served as financial advisor to XIO, and Skadden, Arps, Slate, Meagher & Flom LLP served as XIO’s legal advisor. XIO Group is a global alternative investments firm that employs an international team of more than 60 professionals. Representing more than 15 nationalities among its employees and its network of advisors, the firm is headquartered in London, with operations in the United Kingdom, Germany, Switzerland, Israel, Hong Kong, and mainland China. With a seasoned international investment team that includes professionals with experience working at many of the world’s leading private equity firms, XIO Group seeks to deploy over $5 billion of committed capital for global transactions. XIO Group’s strategy is to identify and invest in market-leading businesses located across North America and Europe and help these companies to capitalize on untapped opportunities in fast growing markets, particularly in Asia. J.D. Power is known for its independent consumer surveys of product and service quality, customer satisfaction, and buyer behavior in more than a dozen industries including automotive, financial services, insurance, energy, and telecommunications. The company’s high quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power has 17 locations serving North and South America, Europe, and the Asia Pacific region. McGraw Hill Financial is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The company’s iconic brands include Standard & Poor’s Ratings Services, S&P Global Market Intelligence, S&P Dow Jones Indices, Platts, CRISIL, and J.D. Power. The company has approximately 20,000 employees in 31 countries.]]>

Wallenberg's EQT to Buy Majority Stake in Danish Eunicorn Sitecore at €1B Valuation

Wallenberg's EQT to Buy Majority Stake in Danish Eunicorn Sitecore at €1B Valuation

Swedish private equity firm EQT has agreed to acquire a majority stake in Denmark-based Sitecore A/S from its founders, Technology Crossover Ventures and other minority shareholders, in a transaction valued at EUR 1 billion. Sitecore is a global leader in customer experience management software. As part of the transaction, Sitecore’s founders are rolling a significant portion of their equity and partnering with EQT for the next phase of growth. Danica and Sampension, investors in EQT, will co-invest in Sitecore alongside EQT. The transaction is subject to approval by relevant regulatory authorities and is expected to close in Q2 2016. Following continued strong growth of more than 30% p.a. in recent years, Sitecore generates revenues of around EUR 200 million at an EBITDA margin of approximately 25%. Sitecore has close to 800 employees across Europe, North America and Asia Pacific.

Sweden is the world’s second most prolific tech hub on a per capita basis, behind Silicon Valley.
“For several years, we have been following Sitecore given its leading market position, its strong technology offering and its impressive growth story,” said Morten Hummelmose, Partner and Head of Denmark at EQT Partners A/S, investment advisor to EQT. “In close cooperation with management, we want to help Sitecore continue to drive product innovation and expand further into the digital marketing software space. We are convinced that EQT’s industrial network and resources can support Sitecore to capture its full potential,” added Dominik Stein, partner and head of Technology, Media and Telecom (TMT) at EQT Partners GmbH, investment advisor to EQT. “The partnership and acquisition announced today by EQT and Sitecore is specifically designed to sustain Sitecore’s profitable growth and scale as Sitecore continues to expand at a rapid double-digit pace,” said Michael Seifert, CEO and co-founder of Sitecore. “We are excited that a world class investor such as EQT will become a critical part of Sitecore’s future growth. With EQT and founders as well as management of Sitecore joining forces, we are convinced that Sitecore is set up for continued success in the years to come.” Sitecore is a global leader in experience management software that enables context marketing. The Sitecore Experience Platform manages content, supplies contextual intelligence, and automates communications, at scale. It empowers marketers to deliver content in context of how customers have engaged with their brand, across every channel, in real time. More than 4,600 customers—including American Express, Carnival Cruise Lines, easyJet, and L’Oréal—trust Sitecore for context marketing to deliver the personalized interactions that delight audiences, build loyalty, and drive revenue. The company was founded in 2001. EQT is a leading global private equity group with approximately EUR 29 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 17 billion and approximately 140,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership. EQT was founded two decades ago as the Wallenberg family sought to diversify their interests beyond their homeland. The family empire sprang from a single bank more than 150 years ago, SEB, now one of the top banks in Sweden. SEB was founded by André Oscar Wallenberg, a naval officer, who had collected books on banking while sailing around the world. EQT Partners is the investment advisor to all the group’s funds. It has around 370 employees, of which approximately 200 are within the investment advisory teams. EQT is headquartered in Stockholm, Sweden. The firm and its affiliates have additional offices in Amsterdam, Copenhagen, Frankfurt, Guernsey, Helsinki, Hong Kong, London, Luxembourg, Madrid, Munich, New York, Oslo, Shanghai, Singapore, Warsaw and Zurich. The company was founded in 1994 by Investor AB, US-based private equity firm AEA Investors, and SEB Asset management. “The Wallenbergs are extraordinarily powerful,” says The Telegraph. “They control a vast business empire made up of large stakes in many of Sweden’s biggest multinationals and worth tens of billions of pounds.”
“By the late 1990s the Wallenbergs’ holding company, Investor AB, was estimated to own roughly 40pc of the Swedish stock market. In short, their influence in Swedish business is unmatched.” —The Telegraph
Investor AB (INVEB.ST) is a Swedish industrial holding company, founded in 1916 and controlled by the Wallenberg family through their Foundation Asset Management company FAM, whose chairman is Peter Wallenberg, Jr., a board member of EQT. The company owns controlling stakes in several large Swedish companies, such as Molnlycke Health Care, Aleris and Grand Hotel, with minority stakes in in global listed companies such as such as Atlas Copco, ABB, SEB, AstraZeneca, Ericsson, Electrolux, Saab, NASDAX OMX, Husqvarna and Saab. Technology Crossover Ventures (TCV), founded in 1995, is a leading provider of capital to growth-stage private and public companies in the technology industry. With nearly $10 billion in capital raised, TCV has invested in more than 200 technology companies over the last 20 years. Selected investments include Altiris, C|NET, ExactTarget, Expedia, Facebook, Fandango, FX Alliance, GoDaddy, Genesys Software, Groupon, HomeAway, Netflix, RealNetworks, Redback Networks, Rent the Runway, RiskMetrics Group, Sitecore, Splunk, Spotify, Thinkorswim, VICE Media and Zillow. TCV is headquartered in Palo Alto, California, with offices in New York and London. Photo: For nearly 130 years, Täcka Udden has been the private residence of Sweden’s most famous of business dynasties: the Wallenbergs. Surrounded by towering hedges and trees, the secluded setting fits the family motto:
Esse non videri – “To be, but not be seen.”
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