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  "docSlug": "778e2cbfbfaa",
  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2019-01-23 00:00:00",
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  "notes": "The slide uses a grid of screenshots of acquired company websites to visually demonstrate the lack of integration.",
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      "text": "Acquired businesses not fully brought into the fold at Amdocs – still operating their separate websites and calling themselves “Amdocs companies”",
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      "text": "As a potential indication of the former, we note that many of the companies acquired by management appear never to be fully integrated into Amdocs; rather, they seem to operate as independent businesses with independent websites, etc. We wonder if management is doing much more with its acquisitions of loosely-related businesses than simply buying sales.",
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      "text": "Again, management rarely breaks out organic growth or offers an explicit organic growth target. However, when we subtract management's expected contributions from acquisitions (when provided) from total sales growth targets, we observe that management has guided to 2-5% organic sales growth through the last several years. Yet, we also observe that Amdocs' sales growth has averaged an annualized 1.5% in quarters in which it has not received an M&A tailwind. We wonder not only if management is pursuing M&A for the sake of revenue growth, but also if it is understating the effect of acquisitions on sales so as to inflate apparent organic growth.",
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      "text": "Why doesn't management integrate these businesses into broader Amdocs more comprehensively?",
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      "text": "Is Management Pursuing M&A To Pad Sales Growth?",
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