Global professional services company Accenture (ACN) has acquired Argentina-based Ergo, a data-centered business that helps companies with decision-making through big data, analytics, and artificial intelligence (AI).
While financial deal terms remained undisclosed, Ergo’s team will become a part of Accenture Cloud First’s Data & AI team.
Management Weighs In
Ariel Guelmos, CEO of Ergo, commented, “Joining the Accenture Cloud First team will enable us to scale our data-led experience for major worldwide clients to achieve better business outcomes, faster—from improving how they work, how they serve customers, and how they differentiate through new products and services.”
The Global Lead for Accenture Cloud First, Karthik Narain, said, “Cloud’s advanced data & AI tools empower companies to transform data into intellectual capital like never before. By acquiring Ergo, Accenture will bring more resources to help clients gain insights about where to focus their transformation for the most value and how data can support better decision-making through the transformation process.”
Notably, the strategic move bolsters Accenture’s ability to help clients achieve data-driven transformation in the Hispanic South American market which, includes Argentina, Chile, and Colombia.
Analyst Take
Robert W. Baird analyst David Koning has reiterated a Hold rating on the stock alongside a price target of $378.
Overall, the Street has a Moderate Buy consensus rating on Accenture based on nine Buys and five Holds. The average Accenture price target of $402.57 implies a potential upside of 24.9%. That’s after a nearly 21% slide in share prices so far this year.
Closing Note
Accenture has been making strategic acquisitions focused on sectors across the board. Ergo is its sixth acquisition in a month. Recently, Accenture has also acquired sustainability engineering and advisory company Greenfish, VR training solutions company Strivr, and orbital compute platform Titan Space Technologies. These moves further solidify Accenture’s expertise in delivering critical solutions to clients.
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