What happened
Shares of EPAM Systems (EPAM +3.57%) rose 15.4% in April, according to S&P Global Market Intelligence. The gain happened after the company introduced new capabilities thanks to its March acquisition of boutique Salesforce (CRM +0.51%) partner PolSource. The stock also benefited from the 5.4% rise in the technology-dense Nasdaq during the month.
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So what
The deal brought more than 350 consultants in-house with experience developing end-to-end solutions on the Salesforce AppExchange across a variety of industries. With an estimated 83% of the Fortune 500 as customers, and 71% of customers using AppExchange, supporting clients with Salesforce development needs has become a requirement in EPAM's world of digital consulting and software engineering. PolSource is a member of six Salesforce advisory panels and brings with it more than 1,000 Salesforce certifications and 14 AppExchange awards.
The acquisition will also enhance the integrated offering, EPAM Continuum, which it launched in 2019. The program brings the company's design, data, and consultant talent together for clients. Buying a Salesforce partner isn't new. EPAM had previously purchased Mulesoft partner Ricston. Salesforce acquired Mulesoft in 2018.
Now what
EPAM CEO Arkadiy Dobkin is already touting the ability of PolSource to position the company as a top global player in the Salesforce services space. Tuck-in acquisitions like PolSource are how the company grew sales more than 30% annually for the decade leading up to the pandemic. It's also how it intends to get back to that level after a less-than-normal 16% growth rate in 2020.
Sales in the just reported first quarter rose 20%, but the company is guiding for 29% full-year revenue growth. Investors should look out for additional deals, as building its Salesforce consultancy was one of three strategic priorities management highlighted for 2021.
