July 5, 2005 – DST Systems, Inc. (NYSE: DST) today announced the sale
and closing of its Video
Broadband/Cable/Satellite TV Customer Care and Billing business (the “Business”)
to Amdocs
Limited (NYSE: DOX) for $237.8 million in cash. The Business, which essentially
represents
DST’s customer management segment, has approximately 700 employees
and recorded operating
revenues of $183 million for 2004. In the first quarter of 2005 operating
revenues were $45
million. Included in the revenues were $49 million for 2004 and $13 million
for the first quarter of
2005 representing inter-segment revenue for output services.
As part of the transaction, DST through its subsidiary DST Output will
continue to provide
electronic and print/mail services to customers of the Business under
a long term contract with
Amdocs. DST Output will be a preferred vendor of such services for customers
of Amdocs in the
United States. Under a separate agreement with Amdocs, DST will also continue
to provide
support of its AWD software for customers of the Business who currently
utilize AWD.
DST expects to recognize a net after-tax gain of approximately
$100 million and receive after tax
proceeds of approximately $150 million in the third quarter 2005 in connection
with the sale. DST
expects the transaction to be somewhat dilutive to earnings per share.
DST does not plan to account
for the transaction as a discontinued operation due to the on-going cash
flows that will be recorded
by DST from the Business post close.
* * * *
The information and comments above may include forward-looking statements respecting DST and
its businesses. Such information and comments are based on DST's views as of today, and actual
actions or results could differ. There could be a number of factors affecting future actions or
results, including those set forth in DST's latest periodic financial report (Form 10-K or 10-Q) filed
with the Securities and Exchange Commission. All such factors should be considered in evaluating
any forward-looking comment. The Company will not update any forward-looking statements in
this press release to reflect future events.
To learn more about DST Press Releases
, contact
us at ctgoldman@dstsystems.com |
