Accenture (ACN) has inked a deal to acquire Tambourine, a Japan-based e-commerce customer experience agency. 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)
Founded in 2015, Tambourine has expertise in cloud-based technologies in Japan. It provides integrated commerce services on the Salesforce platform for consumer goods and entertainment companies.
Implications of the Transaction
According to the company, digital commerce in Japan is predicted to grow by 10.5% to reach $217.5 billion in sales in 2021.
The addition of Tambourine’s digital commerce expertise will bolster Accenture’s strategy to tap this growth potential, and offer superior sales and commerce transformation services across product and platform engineering, as well as omni-channel delivery of commerce experiences.
Tambourine, with its team of approximately 70 customer experience specialists, will become part of Accenture Interactive.
Management Weighs In
Atsushi Egawa, Accenture’s market unit lead in Japan, commented, “Digital customer experience and brand reputation is so closely intertwined that it can impact a company’s growth.”
He further added, “In considering ways to deliver the best of commerce experiences, brands are turning to data and the cloud for leverage. By weaving in Tambourine’s unique offerings into Accenture’s, we will continue to help accelerate our clients’ growth.”
Wall Street’s Take
Evercore ISI analyst David Togut increased the price target on Accenture to $410.00 (10.6% upside potential) from $364.00, and reiterated a Buy rating.
Consensus among analysts is a Strong Buy based on 11 Buys and 3 Holds. The average Accenture price target of $383.79 implies upside potential of 3.5% 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.
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