Amdocs will strengthen its portfolio of policy-based solutions with the $215 (U.S.) million acquisition of Ottawa-based Bridgewater Systems.

Bridgewater was an early innovator in intelligent broadband controls. The definitive agreement to be acquired by Amdocs Limited is subject to Bridgewater shareholder approval, regulatory approval and other closing conditions and is expected to close within approximately 90 days.

“Becoming part of Amdocs would enable us to accelerate our corporate growth strategy, centered around global expansion, enabling the transformation to next generation converged networks, portfolio and solution innovation, and leveraging our installed base," said Ed Ogonek, president and CEO, Bridgewater. “The natural synergies between the Bridgewater and Amdocs product and solution portfolios, coupled with Amdocs’ extensive tier 1 customer base and global presence, would unleash innovative, policy-enabled customer experience solutions to service providers worldwide."

Amdocs’ group president, Brian Shepherd, said, “This acquisition would build on Amdocs’ leadership in delivering innovative solutions that change market paradigms. It is a continuation of our strategy to support service providers as they seek to transform their businesses in anticipation of new market opportunities like 4G and machine-to-machine, and in response to clear threats, such as the data explosion."

Jefferies & Company Inc., acting as financial advisor to the Board of Directors and the Strategy Committee, has provided an opinion that the consideration to be received by Bridgewater shareholders is fair, from a financial point of view, to Bridgewater shareholders. A complete copy of the opinion will be appended to Bridgewater's management proxy circular in respect of the arrangement.

“This transaction is in the best interest of our shareholders and has the full support of the Board of Directors, senior management and key shareholders," said Terry Matthews, chairman of Bridgewater’s Board of Directors. “It provides shareholders with immediate liquidity and fair value for their shares. Furthermore, joining a large, international market leader in Amdocs would create new growth opportunities for Bridgewater for the benefit of its customers and employees."

The cash consideration to be received by shareholders represents an implied premium of 30 percent to Bridgewater’s closing share price of $6.45 (U.S.) and an implied premium of 33 percent to the 20-day volume weighted average trading price.

The transaction is expected to close during the third quarter of 2011, subject to the satisfaction or waiver of various closing conditions.