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Consulting and outsourcing company Accenture (ACN - Analyst Report) completed the acquisition of PRION Group, a Siemens PLM software implementation partner. The acquisition of PRION Group is expected to strengthen Accenture’s Product Lifecycle Management (PLM) services segment. The PRION acquisition, announced on Aug 12, 2013, marks Accenture’s eighth acquisition in 2013.

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

Accenture said that manufacturing companies spend approximately a quarter of its revenues on product development and innovation. Thus, this presents Accenture with ample opportunities to solidify and expand its position in the PLM segment.

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

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 the effectiveness of Accenture’s services, which is in turn favorable for its long-term growth prospects.

Moreover, in the recently concluded quarter, Accenture recorded higher bookings growth and solid performance across insurance, banking and healthcare segments. Additionally, the company’s associations with Vodafone (VOD - Analyst Report) and Telenor for providing IT services are expected to benefit, going forward.

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

Currently, Accenture has a Zacks Rank #3 (Hold).

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