Amdocs acquires venture-backed Sourced Group for $75m

Amdocs has acquired Sourced Group, a Toronto-based technology consultancy specializing in large-scale cloud transformations. The deal, closed in March, reflected a purchase price of about $75 million. Sourced in 2019 raised a C$20 million financing led by Round 13 Capital, with participation from Comerica Bank and HSBC.

PRESS RELEASE

ST. LOUIS, May 12, 2021 (GLOBE NEWSWIRE) — Amdocs (NASDAQ: DOX), 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.
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1 A 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
2 Non-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

About Amdocs
Amdocs’ purpose is to enrich lives and progress society, using creativity and technology to build a better connected world. Amdocs and its 27,000 employees partner with the leading players in the communications and media industry, enabling next-generation experiences in 85 countries. Our cloud-native, open and dynamic portfolio of digital solutions, platforms and services brings greater choice, faster time to market and flexibility, to better meet the evolving needs of our customers as they drive growth, transform and take their business to the cloud. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.2 billion in fiscal 2020. For more information, visit Amdocs at www.amdocs.com.