Accenture Plc. (ACN - Analyst Report) recently boughtMortgage Cadence, a loan origination software and electronic document management services provider. The financial details of the purchase, which is in sync with its plan to grow through strategic acquisitions, remain confidential.
Mortgage Cadence, will enhance Accenture’s technology platform and address the critical needs of financial institutions. The improved technology will help Accenture strengthen its mortgage business process outsourcing services through customized software solutions to mortgage lenders, increasing their operational efficiency while reducing costs.
As per the agreement, Mortgage Cadence will be incorporated into Accenture and the software will become a part of Accenture Credit Services which provides consulting, technology and outsourcing services to financial institutions.
Recently, Accenture also completed the acquisition of the online marketing consultant, Acquity, (Jul 2013), the U.K.-based design agency, Fjord, (May 2013), and digital production services vendor, avVenta Worldwide, (Oct 2012), to enhance its interactive platform.
Accenture is making an effort to enter different business segments and improve its technological base through acquisitions. This has improved its customer base, bookings and performance in the insurance, banking and healthcare sectors. This also reflects a strong demand for Accenture’s services, which is in turn favorable for its long-term growth prospects.
On the other hand, stiff competition from Cognizant Technology Solutions Corp. and IBM Corp. (IBM - Analyst Report), a strained spending environment and Accenture’s broad European exposure (roughly 40.0%) may temper its growth to some extent.
Currently, Accenture has a Zacks Rank #3 (Hold). Investors can also consider other well-performing technology stocks such as Huron Consulting Group Inc. (HURN - Snapshot Report) and Information Services Group Inc. (III - Snapshot Report).Both the companies carry a Zacks Rank #2 (Buy).