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Amdocs (DOX) - Get Free Report agreed to acquire closely held Qpass of Seattle for $275 million in cash.

Amdoc, a St. Louis-based software company, said the deal will enable its customers to create additional sources of revenue through the delivery of digital goods over multiple devices and various access methods.

"Service providers are working hard to adapt their networks and business models to take advantage of the growing content and services market," Amdocs said. "This transaction creates a unique combination that will help realize the transformation of service providers from carriers of voice and data services to dynamic retailers of ubiquitous, converged services and digital content."

Amdocs currently works with 150 of the world's leading service providers -- including broadband cable, satellite, fixed access, and wireless service providers -- enabling them to grow stronger, more profitable customer relationships. Qpass works with some of the largest carrier groups globally, including Cingular, Sprint and T-Mobile.

"Consumers have begun to expect higher levels of personalization and richer content via multiple electronic channels," said Chase Franklin, CEO and founder of Qpass. "As the consumption of content and digital goods becomes mainstream, volume and complexity will increase significantly and the demand for additional services will grow. The merger with Amdocs will provide a comprehensive answer to help service providers support these increased demands."

The transaction is expected to be dilutive to Amdocs earnings by a penny or two a share during 2006, and is expected to become accretive to earnings per share excluding acquisition related items during fiscal 2007. Amdocs may incur a one-time charge in its third fiscal quarter ending June 30, when the deal is expected to close, to account for certain costs related to the acquisition.