Accenture (ACN) revealed that it has acquired Advoco, one of the largest systems integrators for Infor EAM, to bolster its intelligent asset management solutions capabilities. Infor EAM is a software-as-a-service suite for enterprise asset management (EAM).
Accenture is a multinational professional services company, which provides management consulting, technology and outsourcing services. (See Accenture stock charts on TipRanks)
With this deal, Accenture will be able to cater clients in the consumer goods & services, industrial, life sciences, transit and other industries and help make operations and supply chains safer, more sustainable, productive and cost-efficient.
The terms of the acquisition have not been disclosed so far. Also, Advoco’s team is joining Accenture’s Industry X group in the United States. Accenture is planning to establish Advoco’s Greenville office as a center of excellence for Infor EAM delivery, industry use cases and intelligent asset management.
The Global Lead for Accenture Industry X, Nigel Stacey, said, “Many of our clients are looking to leverage Infor EAM when embedding more intelligence in their asset management to drive the performance of their most critical assets. Advoco is highly respected for its talent, expertise and training program in this space. Together, we will bring Infor EAM capabilities to clients at scale to take advantage of a growing market opportunity.”
Notably, Accenture has made about 24 acquisitions since 2017 to build its Industry X capabilities. The latest of these acquisitions was the buyout of umlaut, an engineering consulting and services firm.
On September 27, Barclays analyst Ramsey El-Assal reiterated a Buy rating on the stock and raised the price target to $384 from $335 (18.1% upside potential).
Overall, the Street is bullish on the stock and has a Strong Buy consensus rating based on 12 Buys and 2 Holds. The average Accenture price target of $380.15 implies upside potential of about 16.9% from current levels.
Furthermore, Accenture scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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