Multinational professional services company Accenture (ACN) announced that it has acquired a consulting and technology firm, Xoomworks Group. The terms of the deal have not been disclosed so far.
Xoomworks Procurement, a unit of Xoomworks, will help strengthen Accenture’s Closed Loop Spend Management capabilities, which help clients with end-to-end transformations that deliver visibility across direct and indirect cost categories and drive new ways of working to generate sustainable cost savings and top-line value.
Furthermore, Xoomworks Technology unit will bring an approach for delivery designed to create value, foster innovation and achieve business outcomes. (See Insiders’ Hot Stocks on TipRanks)
The Senior Managing Director and Accenture’s Intelligent Platform Services Europe Lead, Jan Van Den Bremen, said, “Intelligent platforms and ecosystem partners play a pivotal role in bringing together the major capabilities needed to run a modern enterprise and take advantage of new business models. With the addition of Xoomworks, we are expanding our deep technology expertise to further help accelerate the path to value for our clients at speed.”
Following the announcement of Glamit acquisition on October 13, Robert W. Baird analyst David Koning maintained a Hold rating on Accenture with a price target of $354 (3.2% upside potential from current levels).
Koning said, “We estimate already-announced acquisitions could add ~3.9% to annual revenue for F2022 (management previously noted acquisitions could add ~5% to F2022 revenue, which includes acquisitions yet to be announced); expects to spend ~$4 billion on acquisitions in F2022. This was the 7th acquisition announced in F2022.”
Overall, the stock has a Strong Buy consensus rating based on 12 Buys and 2 Holds. The average Accenture price target of $380.15 implies 10.8% upside potential.
Investors should always be aware of the risks involved in any stock. According to the new TipRanks’ Risk Factors tool, ACN is at risk mainly due to two factors: Finance & Corporate and Ability to Sell, which contribute 32% and 23%, respectively, to the total 22 risks identified. Under the Finance & Corporate risk category, Accenture has seven risks, details of which can be found on the TipRanks website.