Amdocs acquires Sourced to Further Boost Communications Industry’s Move to the Cloud
May 12 2021 - 3:05PM
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.
_____________________________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 20212 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
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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.
Amdocs’ Forward-Looking
Statement
This press release includes information that
constitutes forward-looking statements made pursuant to the safe
harbor provision of the Private Securities Litigation Reform Act of
1995, including statements about Amdocs’ growth and business
results in future quarters. Although we believe the expectations
reflected in such forward-looking statements are based upon
reasonable assumptions, we can give no assurance that our
expectations will be obtained or that any deviations will not be
material. Such statements involve risks and uncertainties that may
cause future results to differ from those anticipated. These risks
include, but are not limited to, the effects of general economic
conditions, the duration and severity of the COVID-19 pandemic, and
its impact on the global economy, Amdocs’ ability to grow in the
business markets that it serves, Amdocs’ ability to successfully
integrate acquired businesses, adverse effects of market
competition, rapid technological shifts that may render the
Company's products and services obsolete, potential loss of a major
customer, our ability to develop long-term relationships with our
customers, and risks associated with operating businesses in the
international market. Amdocs may elect to update these
forward-looking statements at some point in the future; however,
the Company specifically disclaims any obligation to do so. These
and other risks are discussed at greater length in Amdocs’ filings
with the Securities and Exchange Commission, including in our
Annual Report on Form 20-F for the fiscal year ended September 30,
2020 filed on December 14, 2020, and our Form 6-K furnished for the
first quarter of fiscal 2021 filed on February 16, 2021.
Media Contacts:
Jeff BarakAmdocs Public RelationsTel: +972 52
645 3637 E-mail: Jeff.Barak@amdocs.com
Emily Holt PAN Communications for Amdocs Email:
Amdocs@pancomm.com
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