Communications software developer Amdocs has acquired Australia-founded enterprise cloud computing consulting firm Sourced Group for a net consideration of US$75 million in cash to expand its portfolio into the cloud.
The deal, which took place in mid-March but was undisclosed until now, consisted of approximately US$65 million paid in the second fiscal quarter of 2021, while the rest of the cost is expected to be paid during the third fiscal quarter.
Additional payment is also available based on unspecified performance metrics.
Founded in 2010 in Australia, Sourced moved its headquarters to Ontario, Canada, in 2018. In addition to these two countries, the firm also has offices in Singapore and Malaysia. Meanwhile, Amdocs is based in Missouri, United States, but has many offices around the world, including Australia, Canada and Singapore.
According to Amdocs president and CEO Shuky Sheffer, the decision to snap up Sourced came as part of the developer’s investment in the cloud.
“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,” he said.
Jon Spinks, Sourced founder and CEO, added that the firm will continue to serve its existing clientele with added capability provided by Amdocs.
“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,” Spinks said.
“We also look forward to continuing serving our current customers and leveraging Amdocs’ scale to further accelerate their cloud journeys.”
This is the latest move for Sourced after a string of big moves for the company over the past few years. In September 2019, the firm closed its first round of investment with $22.1 million raised to fund its global growth plans.
Canada-based venture capital company Round 13 Capital led the funding round, along with the US-based Comerica Bank and HSBC. Less than a year later, in January 2020, it overhauled its senior leadership ranks, promoting then-managing director for Australia and New Zealand Salma Datenis to oversee its global operations.
Tim Baguley was then promoted to take up Datenis’ former position from head of consulting for Australia, and Yuri Litvinov to take up was promoted Baguley’s former position from principal consultant.
Then, later that year, in October, Source Group launched a new cloud security company and product in the form of Kivera following the firm securing an additional $2.5 million in funding from Round 13.