Accenture\’s 2023 Power Play: 10 Acquisitions Shaping the Stock Landscape
Accenture plc is a global leader in consulting and professional services, with expertise in digital, technology, and operations. Its Q2FY2023 earnings report showed a slight increase in total revenue of 0.42% from the previous quarter, but a decrease in gross profit, operating income, and net income. Despite missing estimated normalized and GAAP EPS, Accenture\’s revenue beat forecasts by $223.10 million, indicating a strong performance in the quarter. The company\’s Q3FY2023 earnings report is expected to show a normalized EPS estimate of $2.98, a GAAP EPS estimate of $2.92, and a revenue forecast of $16.48 billion.
Accenture has also made several acquisitions and strategic investments in 2023, including sustainability consultancy Green Domus in Brazil, SAP digital design agency Bourne Digital in Australia, and Israeli-German medical device startup Virtonomy. These acquisitions and investments are aimed at expanding Accenture\’s capabilities in various industries and geographies, including sustainability, SAP supply chain, logistics consulting, medical devices, and cloud-native innovation and analytics. Other partnerships with TELUS, a Canadian telecommunications company, and cybersecurity company Morphus in Brazil, are focused on delivering better customer experiences and enhanced security for clients.
Overall, Accenture\’s investments in digital technologies and strategic acquisitions and partnerships position it well for future growth in various industries and geographies.
Strategic Acquisitions and Investments Driving Growth
| Date | Company | Type | Industry | Country |
| June 2, 2023 | Green Domus | Acquisition | Sustainability consultancy | Brazil |
| June 1, 2023 | Nextira | Acquisition | Cloud-native innovation and analytics | USA |
| June 1, 2023 | Bourne Digital | Acquisition | SAP digital design agency | Australia |
| May 29, 2023 | Green Domus | Intent to acquire | Sustainability consultancy | Brazil |
| May 22, 2023 | Einr AS | Acquisition | SAP supply chain and logistics consulting | Norway |
| May 17, 2023 | Objectivity | Acquisition | Cloud and platform development services | UK and Poland |
| April 28, 2023 | Einr AS | Intent to acquire | SAP supply chain and logistics consulting | Norway |
| April 14, 2023 | Alan Jope (Unilever CEO) | Board appointment | N/A | N/A |
| April 12, 2023 | Virtonomy (medical device startup) | Investment (minority stake) | Medical device development platform using AI and VR/AR technologies. The investment will help Virtonomy scale its platform and expand its global reach. Virtonomy will also join Accenture’s Project Spotlight program. | Israel and Germany. |
| March 30, 2023 | Looking Glass Factory (holographic display company) | Investment (minority stake) | Holographic display technology that enables users to view and interact with holograms without VR/AR headsets. The investment will help Looking Glass Factory scale its technology and expand its market presence. Looking Glass Factory will also join Accenture’s Project Spotlight program. | USA and Hong Kong. |
| March 23, 2023 | Flutura (industrial AI company) | Acquisition | Industrial AI solutions for the energy, manufacturing and engineering sectors. The acquisition will enhance Accenture’s Industry X capabilities and help clients optimize their operations and assets with data-driven insights. | India and USA. |
| March 7, 2023 | TELUS (Canadian telecommunications company) | Partnership | Digital transformation of TELUS’ television and digital life businesses using Accenture’s cloud-based video platform. The partnership will enable TELUS to deliver personalized and interactive experiences to its customers across devices and platforms. | Canada. |
| March 2, 2023 | Morphus (Brazilian cybersecurity company) | Acquisition | Cybersecurity solutions for cloud environments, web applications and networks. The acquisition will strengthen Accenture’s security capabilities in Brazil and Latin America and help clients protect their data and assets from cyber threats. | Brazil. |
| February 13, 2023 | Bionest (US-based life sciences consulting firm) | Acquisition | Strategy, innovation and digital transformation consulting for life sciences clients. The acquisition will enhance Accenture’s capabilities in the life sciences industry and help clients accelerate their growth and innovation agendas. | USA. |
| February 2, 2023 | SKS Group (German strategy and consulting firm) | Acquisition | Strategy and consulting services for banking clients in Germany, Austria and Switzerland. The acquisition will expand Accenture’s capabilities in the financial services industry and help clients navigate the changing market dynamics and regulatory environment. | Germany. |
Source : https://newsroom.accenture.com/subjects/acquisitions/
Accenture($ACN): Q2FY2023 Earnings Report and Revenue Beat
Accenture Plc, a consulting and professional services company, recently announced its Q2FY2023 earnings on March 23, 2023. The company missed the estimated normalized EPS by $0.11, reporting an actual figure of $2.39. Similarly, the GAAP EPS also fell short of expectations, coming in at $2.39 and missing the estimate by $0.10. However, Accenture\’s revenue for the quarter was $15.81 billion, beating the forecast by $223.10 million. Looking ahead, the company is expected to release its Q3FY2023 earnings report on June 22, 2023. The estimated normalized EPS is $2.98, with a GAAP EPS estimate of $2.92. The revenue forecast for the quarter is $16.48 billion.
Company Description: Accenture ($ACN)
Accenture plc provides strategy and consulting, technology, operations, and Accenture song services worldwide. It serves North America, Europe, and growth markets. It offers application services, artificial intelligence, automation, business process outsourcing, business strategy, change management, cloud, data and analytics, digital commerce, digital engineering and manufacturing, finance consulting, infrastructure, marketing, mergers and acquisitions, metaverse, operating models, security, supply chain management, technology consulting, technology innovation, and zero-based transformation. C-Suite assessment, team dynamics, and others help organisations transform. Eclipse Automation offers cloud, data, and AI-powered automated production lines that make factories and plants smarter.
Accenture($ACN): Valuation Overview and Potential Impact on the Stock Landscape
| Valuation Ratios | Current | 2023E | 2024E | 2025E |
| EV/ Sales | 3.07 | 3.34 | 3.33 | 3.40 |
| EV/ EBITDA | 18.60 | 18.58 | 18.26 | 18.27 |
| EV/ EBIT | 20.66 | 22.79 | 22.18 | 21.69 |
| Price/Earnings | 28.59 | 31.08 | 30.44 | 30.26 |
Author : Equisights Team
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