Accenture has agreed to acquire cloud native full-stack development firm Cygni. Cygni helps businesses with their digital transformation. Financial details of the transaction were not disclosed.
Accenture Cloud Firsts’ (ACN) Global Lead, Karthik Narain said, “Having Cygni’s talented team join Accenture Cloud First strengthens our ability to help clients use the cloud and technology innovation to act faster, operate sustainably, and deliver exceptional new experiences.”
CEO and founder of Cygni, Jon Persson said, “By joining Accenture, our people will get the opportunity to continue to grow even more as an integral part of Accenture Cloud First. Solving huge and challenging problems for local and global clients will create even more opportunities for our people to build their skills and experience.”
Cygni has expertise across multiple industries ranging from communications to utilities as well as digital projects for the national government. The acquisition is expected to bolster Accenture Cloud First’s global capabilities.
Accenture launched Acenture Cloud First in November 2020 to help clients in their cloud and digital transformation with a $3 billion investment over a 3 year period. (See Accenture stock analysis on TipRanks)
On March 15, Stifel Nicolaus analyst David Grossman reiterated a Buy rating on the stock and maintained a price target of $300 (6.9% upside potential). Grossman said, “Accenture has underperformed the the S&P500 by nearly 600 basis points since its last report, perhaps reflecting market rotation into more cycle/value oriented names. We view this as a best in class low volatility core asset, which should always be bought/sold opportunistically.”
Turning to rest of the Street, the stock has a Moderate Buy consensus rating alongside an average analyst price target of $299.45 (6.7% upside potential) based on 8 Buys and 3 Holds. Shares have rallied about 63.9% over the past year.