Amdocs buys MX Telecom for $104m

By Ewan MacLeod

Amdocs — the industry behemoth — swooped in and acquired the mighty MX Telecom, one of the best messaging providers on the planet. I got the news just as I was coming out of a meeting and had to stop everything and send a quick post followed by a few more announcement details, including the price – $104m.

To bring you up to speed on Amdocs, let me give you the background. Mention ‘Amdocs’ and most people visibly wilt. I’ve heard some describe sitting in an Amdocs press conference as slightly more interesting than watching the proverbial paint dry. However that’s to miss the point about the company. Yes, their website does need quite a lot of flashy graphics. Yes, it does need a lot of crash-bang-wallop footage on the video blog. Yes, the phrase ‘customer experience systems innovation‘ sounds like a part-time marketing executive in Hartlepool worked really hard on that one. Yes, I think they do need a bit of help with their marketing message to the industry and beyond.

But the company is a behemoth.

An absolute behemoth, employing talented people delivering some phenomenal services to companies across the planet.

The Amdocs customer list reads like the Who’s Who of Mobile. Their systems enable critical elements of just about any mobile operator you can name. They are, in many respects, the mobile industry infrastructure glue. If you’re a mobile operator and you’re NOT using Amdocs, you’re generally rubbish, misguided or a bit new to the party. The company knocked back almost three billion dollars in revenue last year with net income of a cool $326m.

So that’s Amdocs.

What are they wanting with MX Telecom, the industry’s messaging expert? Well, Amdocs also owns OpenMarket, a ‘leading mobile transaction hub’ operating in the United States, but with plans to move beyond the States. There are quite a lot of synergies with MX.

I’ve written about MX Telecom regularly here on the site — and I’m a huge fan. I’m a fan because I’ve done business with them. Indeed, I still have a UK SMS shortcode with them. They’re just about the most reliable and well-managed mobile messaging business on the planet. The company is staffed by serious, capable types who — I kid ye not — eat technical challenges for breakfast. I’ve been to their UK offices in the British Standards building here in Chiswick and goodness me, it’s a bewildering experience. It’s like visiting the den of ‘Q’ from James Bond. They’ve got tools, toys and technology overflowing. And some of the services they’ve demonstrated to me… well, each time, I have had to stand back, mouth open, then ask ‘and this isn’t public either, right?’

Not for nothing is MX Telecom lauded as one of the best and most reliable mobile messaging companies, bar none.

So I’m delighted that they’ve been acquired. $104m is a brilliant exit for the founders who thoroughly deserve it.

As for the management and the team, well — it’s the next chapter. Every success to everyone.

I’m looking forward to seeing what MX, OpenMarket and Amdocs can deliver to the market together, bring it on!