Amdocs Ltd. agreed to acquire mobile and broadband software company Bridgewater Systems Corp. for C$211 million (US$214.8 million).
The Canadian target had been exploring a sale since January, hiring Phil Berkowitz and Jason Auerbach of Jefferies & Co. Inc. to run the auction. Andrea Johnson of Fraser Milner Casgrain LLP was the lead attorney providing legal counsel.
“[Bridgewater] had discussions with multiple strategic and financial partners,” said a source close to the talks, without revealing names or details of rival bidders. “Amdocs stepped forward and we proceeded from there.”
Two private equity players in this space include Warburg Pincus and Providence Equity Partners. Recall their joint sale of Telcordia Technologies Inc. earlier in the week. On June 14, the Piscataway, N.J.-based company was acquired by Ericsson for $1.5 billion. Telcordia, like Bridgewater, develops mobile and broadband software.
Amdocs, meanwhile, trades on the New York Stock Exchange as DOX and has a market capitalization close to $5.6 billion. Based in Guernsey, Channel Islands, some 30 miles off the coast of France, the communications software provider looks to build on its mobile capabilities.
Terms of the Bridgewater transaction, expected to close during the third quarter, represent a 30% premium to the company’s closing share price of C$6.33 on June 16. The deal circular will be sent out in mid-July to solicit shareholder approval.
Australian private equity firm Crescendo Partners, which owns some 2.65 million common shares of Bridgewater, already voted in favor of the deal. The Sydney-based sponsor owns a 10.5% in Bridgewater and gets roughly a $21.7 million in return after the sale is complete.
Bridgewater, which went public in 2007, trades on the Toronto Stock Exchange with ticker symbol BWC. The Ottawa, Ontario-based company had a market capitalization hovering C$202 million at the time of the announcement.
Bridgewater’s total revenue for the first quarter of 2011, announced May 13, slumped to $19.1 million, compared with $24.5 million during the same period last year. The company generated $1.4 million in Ebitda during the first quarter, which ended March 31. That’s 75% less that what it had in the first quarter of 2010.