To help its clients efficiently manage their digital transformation expenditures, Accenture (ACN) has acquired ClearEdge Partners. The financial terms of the deal have been kept under wraps.
Shares of the global professional services company have gained 54% over the past year. (See Accenture stock charts on TipRanks)
Boston-based ClearEdge is a provider of advisory, sourcing support and spend optimization services. It has expertise in information technology (IT) spend management and software asset management.
Benefits of the Acquisition
According to an industry estimation by Gartner, global IT spending will reach $4.1 trillion by the end of 2021, growing 8.4% year-over-year.
The addition of ClearEdge proprietary technologies will enhance Accenture’s SynOps capabilities. Furthermore, the acquisition will result in greater expertise, cost savings, and generate greater value out of the client’s existing IT investments.
Management Weighs In
Manish Sharma, the Group Chief Executive at Accenture Operations, said, “While the pandemic accelerated the speed of digital adoption, organizations are now at an inflection point where sustaining growth will be defined by those that create value faster and maximize the impact of those investments.”
Wall Street’s Take
Consensus among analysts is a Strong Buy based on 11 Buys and 3 Holds. The average Accenture price target of $380.50 implies upside potential of 4.01% from current levels.
Accenture scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.