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In a bid to strengthen its Product Lifecycle Management (PLM) services segment, Accenture (ACN - Analyst Report) has planned to acquire PRION Group, a Siemens PLM software implementation partner. The financial details of the deal, which would be Accenture’s eighth acquisition to date in 2013, were not available.

Headquartered in Stuttgart, Germany, PRION Group provides value added services that range from PLM Strategy & Process Consultancy, PLM System & Data Migration, PLM Application Implementation to PLM Operation / Managed Services.

PRION Group boasts a strong clientele from diversified sectors such as automotive, transportation to aerospace & defense and consumer goods. It’s clients include Procter & Gamble (PG - Analyst Report), Alstom, Audi and B/E Aerospace to name a few.

With the PRION acquisition, Accenture will not only expand its product portfolio but also gain traction in the PLM segment. Moreover, the combined forces of both the companies will deliver products and services to their customers in a faster, efficient and cost effective manner.

Accenture opined that manufacturing companies spend approximately 1/4th of their revenues on product development and innovation. Thus, this presents Accenture with an ample opportunity to solidify and expand its position in the PLM segment.  

Accenture is making an effort to enter different business segments and improve its technological base through acquisitions.

Acquisitions have not only expanded Accenture’s customer base but have also improved its 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.

However, increasing competition from Cognizant Technology Solutions (CTSH - Analyst Report) and International Business Machines Corp. (IBM - Analyst Report), a strained spending environment and Accenture’s broad European exposure (roughly 40.0%) may temper its growth prospects to some extent.

Accenture carries a Zacks Rank #3 (Hold).

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