Amdocs, a maker of billing software for telecoms and other service providers, will buy Qpass for US$275 million, the companies announced Tuesday.
Qpass provides e-commerce software and services that help operators to manage and deliver digital content over various networks. Its customers include Sprint Nextel, Cingular Wireless, T-Mobile International and Skype Technologies.
The acquisition comes as telecoms and mobile operators intensify their efforts to sell digital content such as music and video clips to handheld devices.
Amdocs said the acquisition will help its customers find new ways to generate revenue from content delivered to handsets and other devices. Amdocs works with providers in broadband, cable, satellite, fixed access and wireless.
Qpass says it has relationships with 300 content providers, and its products serve 175 million mobile users and 60 million customers using Wi-Fi, VOIP (voice over Internet Protocol) and Web portals. It has about 300 employees and joint headquarters in Seattle and Vienna.
Amdocs will buy all of the capital stock shares of Qpass. The deal is expected to close by the middle of the year, subject to regulatory approval.
Amdocs said the buyout will reduce its earnings per share by US$0.01 to US$0.02 in fiscal 2006, excluding acquisition-related costs. It expects it to start adding to its earnings in 2007.