US-based Amdocs (DOX) has announced an agreement to acquire Longshine Information Technology Company Ltd, a privately-held vendor of customer care and billing software in China.
Amdocs will acquire Longshine's outstanding shares for approximately US $30 million in cash with the possibility of additional cash consideration to be paid later based on the achievement of certain performance metrics. This acquisition expands Amdocs' global presence and marks its entry into mainland China.
In addition, this acquisition will provide value to current Longshine customers. The combination of Longshine and Amdocs offers the ability to implement best practices and services from around the globe enabling Chinese service providers to more effectively deal with growing complexity and increasing competition.
Longshine has been providing billing, customer care, business intelligence and settlement systems, as well as associated integration and implementation services, since 1996, with a primary focus on the telecommunications sector in China, in addition to the utility industry. Today, it counts three out of China's four largest communications service providers among its customers. Headquartered in Beijing, Longshine is present in more than 15 provinces across China and serves more than 120 million subscribers. It has been successful in attracting skilled professionals experienced in the delivery of customer care and billing systems, and has close to 800 employees.
The former Longshine will operate as a business unit in China within Amdocs' Asia Pacific (APAC) division, and will be led by the founder and existing CEO, Mr. Zhangjun XU. Amdocs intends to continue to sell Longshine's software products and services in China. In parallel, Amdocs will start offering the Amdocs 6 portfolio of products and accompanying services to the Chinese market.
Completion of the acquisition is subject to certain customary closing conditions.