Amdocs Buys Nortel’s CRM Assets

Natasha Gray

Updated · Oct 02, 2001

In a bid to become a leader in the Customer Relationship Management (CRM) market, St. Louis, Mo.-based Amdocs Limited (NYSE:DOX), a provider of customer care, billing and order management solutions, today announced an approximately $200 million cash purchase of Clarify, a provider of CRM software from networking a communications firm Nortel Networks (NYSE:NT).

According to Avi Naor, President and CEO of Amdocs, the acquisition represents an excellent opportunity for Amdocs to leverage its potential in the communications CRM market: “The acquisition of Clarify immediately expands our current offerings and market presence in communications CRM,” he says.

Under terms of the agreement, Toronto-based Nortel Networks will sell substantially all assets to Amdocs used in the Clarify portfolio, including patents, intellectual property and trademarks. Amdocs will also assume existing customer contracts, as well as certain leased office space.

Naor explains that as Amdocs is focused on business applications for communications, Clarify's capabilities are integral to its 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,” he says.

Commenting on the CRM market, Naor says it has considerable potential, especially in the communications industry, where he believes service providers are 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,” he says.

For Nortel, the sale is in keeping with the firm's plan to streamline the business around core markets so as to strengthen it's financial position: “We are making excellent progress against the work plan we laid out earlier this year and this sale of non-core assets is further evidence of that,” says Frank Plastina, president service provider and corporate networks, Nortel Networks.

The acquisition, which is expected to close by the end of December 2001, is subject to customary regulatory approvals. Morgan Stanley & Co., Incorporated advised Amdocs Limited in this transaction.

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