Accenture’s 2023 Power Play: 10 Acquisitions That Could Reshape the Stock Landscape!

Published On: June 5, 2023

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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