Amdocs acquires Sourced to Further Boost
Communications Industry’s Move to the Cloud
Deal expands Amdocs’ portfolio of market-leading
cloud-native products and services; brings Sourced’s decade-long experience of
delivering cloud at scale
Amdocs, a leading provider of software and
services to communications and media companies, today announced it has acquired
Sourced Group, a leading global technology consultancy
specializing in large-scale cloud transformations for sophisticated, high-end
enterprises in industries such as financial services, communications and
others. The two companies are excited by the opportunity to strengthen Amdocs’
capabilities for taking the communications industry to the cloud and bring to
Amdocs’ 350+ service provider customers Sourced’s decade-long experience of
delivering cloud at scale.
“We are delighted the innovative
Sourced team is joining Amdocs. We are proud to bring such great professionals
and practices to our industry and look forward to working with their
wide-reaching customer base in North America, Asia-Pacific and Australia. This
acquisition is part of our wider cross-company investment in the cloud and will
further solidify our leadership in this domain as we accelerate our strategy to
take the communications and media industry to the cloud,” said Shuky Sheffer,
President and Chief Executive Officer of Amdocs Management Limited. “Sourced’s
proven cloud migration platform, deployment framework and trusted design
process, alongside its deep partnerships with Amazon Web Services, Microsoft
Azure and Google Cloud Platform, complement our portfolio of cloud-native
products and services and further expands and diversifies our customer base.”
“We are excited to join Amdocs and
believe the combination of Amdocs’ cloud-native products and services and our
high-end consulting and deep expertise across the entire cloud transformation
process will prove compelling for service providers as they move to the cloud,”
said Jon Spinks, Sourced founder and CEO. “We also look forward to continuing
serving our current customers and leveraging Amdocs’ scale to further
accelerate their cloud journeys.”
Sourced, a previously
privately-owned company headquartered in Toronto, has offices in Australia,
Singapore and Malaysia.
Amdocs acquired Source in mid-March
for a net consideration of approximately $75 million in cash1.
Additional consideration may be paid later based on the achievement of certain
performance metrics. The impact of the acquisition on Amdocs’ non-GAAP diluted
earnings per share2 is expected to be neutral in the full fiscal
year 2021. The impact on GAAP diluted earnings per share will not be known
until after Amdocs completes the purchase price allocation.
1A net
consideration of approximately $65 million was paid in the second fiscal
quarter of fiscal 2021, while the remaining amount is expected to be paid in
the third quarter of fiscal 2021
2Non-GAAP diluted earnings per share excludes amortization of
purchased intangible assets and other acquisition-related costs, changes in
certain acquisitions related liabilities measured at fair value, equity-based
compensation expenses, gain from divestiture of OpenMarket and other, net of
related tax effects
Source: Amdocs media announcement
