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Accenture (ACN) Buys E-commerce Solution Provider Media Hive
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In an effort to expand its agency business, global consulting giant, Accenture Plc (ACN - Free Report) , yesterday announced the acquisition of Media Hive, an e-commerce solution provider. However, financial details of the transaction have been kept under wraps.
Media Hive will join the Accenture Interactive platform, part of the company's digital marketing-services arm, Accenture Digital. Accenture Interactive was formed in 2009 to deliver superior consulting, technology and analytics services to chief marketing officers (CMOs).
Founded in 2003 by Thomas McGee and Greg O’Keeffe, Media Hive helps its clients in transforming their businesses through its expertise in providing cross-channel commerce strategies, developing custom applications and creating innovative retail experience for any device.
Therefore, the integration of Media Hive’s expertise will help Accenture in enhancing its Interactive capabilities in implementing Salesforce (CRM - Free Report) Commerce Cloud and delivering best-in-class commerce experience for its clients. Notably, Salesforce Commerce Cloud was earlier known as Demandware which Salesforce acquired in July last year.
Shares of Accenture gained slightly over 1% yesterday. Notably, the stock has outperformed the Zacks categorized Consulting industry in the year-to-date period. The industry gained 3.3%, while the stock returned 4.4% during the aforementioned period.
Enhancing Digital Capabilities
Since the formation of Accenture Interactive, the company has made significant acquisitions to enhance its digital marketing capabilities, including the acquisition of Reactive Media, an Australian digital services provider and Brightstep, a Swedish digital content and commerce solution provider.
In November last year, Accenture acquired privately held UK–based creative advertisement agency, Karmarama, a full-service digital agency. In this year so far, Accenture has acquired a majority stake in IMJ Corporation and SinnerSchrader AG. Prior to that, Accenture acquired AD.Dialeto, Pacific Link and Chaotic Moon. These acquisitions are part of the company’s efforts to boost its digital marketing capabilities globally.
In our opinion, the acquisition of Media Hive will further help Accenture to provide end-to-end digital marketing services, which will bring a deeper and broader set of digital solutions to its clients. Notably, Media Hive will be Accenture’s 11th acquisition globally, since 2013, under its Interactive platform.
Considering the growing need for digital marketing, we anticipate Accenture’s investment in digital and marketing capabilities to be conducive to long-term growth. It will also help the company in effectively competing with other digital marketing service providers, such as International Business Machines Corp. (IBM - Free Report) , Dell and Deloitte.
Acquisitions – A Key Growth Strategy
Accenture pursues strategic acquisitions to diversify its offerings and expand operating markets. Last year, the company completed or signed about 12 acquisition deals across various business segments, including IT security, CRM capabilities and strategy consulting. In 2015, it closed 21 takeovers.
These acquisitions have enabled Accenture to foray into newer markets, diversify and broaden its product portfolio, and maintain the leading position. A strong cash balance of $3.24 billion and an operating cash flow of $1.24 billion at the end of second-quarter fiscal 2017 are expected to support Accenture’s inorganic growth strategy.
Accenture’s long-term prospects look promising due to its sustained focus on innovative product launches, continuous investments in enhancing digital and marketing capabilities, as well as major acquisitions. Moreover, we believe that regular acquisitions will significantly contribute to the company's revenue stream.
The stock currently carries a Zacks Rank #3 (Hold).
The long-term expected earnings per share growth rate for NV5 Global is 20%.
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Accenture (ACN) Buys E-commerce Solution Provider Media Hive
In an effort to expand its agency business, global consulting giant, Accenture Plc (ACN - Free Report) , yesterday announced the acquisition of Media Hive, an e-commerce solution provider. However, financial details of the transaction have been kept under wraps.
Media Hive will join the Accenture Interactive platform, part of the company's digital marketing-services arm, Accenture Digital. Accenture Interactive was formed in 2009 to deliver superior consulting, technology and analytics services to chief marketing officers (CMOs).
Founded in 2003 by Thomas McGee and Greg O’Keeffe, Media Hive helps its clients in transforming their businesses through its expertise in providing cross-channel commerce strategies, developing custom applications and creating innovative retail experience for any device.
Therefore, the integration of Media Hive’s expertise will help Accenture in enhancing its Interactive capabilities in implementing Salesforce (CRM - Free Report) Commerce Cloud and delivering best-in-class commerce experience for its clients. Notably, Salesforce Commerce Cloud was earlier known as Demandware which Salesforce acquired in July last year.
Shares of Accenture gained slightly over 1% yesterday. Notably, the stock has outperformed the Zacks categorized Consulting industry in the year-to-date period. The industry gained 3.3%, while the stock returned 4.4% during the aforementioned period.
Enhancing Digital Capabilities
Since the formation of Accenture Interactive, the company has made significant acquisitions to enhance its digital marketing capabilities, including the acquisition of Reactive Media, an Australian digital services provider and Brightstep, a Swedish digital content and commerce solution provider.
In November last year, Accenture acquired privately held UK–based creative advertisement agency, Karmarama, a full-service digital agency. In this year so far, Accenture has acquired a majority stake in IMJ Corporation and SinnerSchrader AG. Prior to that, Accenture acquired AD.Dialeto, Pacific Link and Chaotic Moon. These acquisitions are part of the company’s efforts to boost its digital marketing capabilities globally.
In our opinion, the acquisition of Media Hive will further help Accenture to provide end-to-end digital marketing services, which will bring a deeper and broader set of digital solutions to its clients. Notably, Media Hive will be Accenture’s 11th acquisition globally, since 2013, under its Interactive platform.
Considering the growing need for digital marketing, we anticipate Accenture’s investment in digital and marketing capabilities to be conducive to long-term growth. It will also help the company in effectively competing with other digital marketing service providers, such as International Business Machines Corp. (IBM - Free Report) , Dell and Deloitte.
Acquisitions – A Key Growth Strategy
Accenture pursues strategic acquisitions to diversify its offerings and expand operating markets. Last year, the company completed or signed about 12 acquisition deals across various business segments, including IT security, CRM capabilities and strategy consulting. In 2015, it closed 21 takeovers.
These acquisitions have enabled Accenture to foray into newer markets, diversify and broaden its product portfolio, and maintain the leading position. A strong cash balance of $3.24 billion and an operating cash flow of $1.24 billion at the end of second-quarter fiscal 2017 are expected to support Accenture’s inorganic growth strategy.
Accenture PLC Price
Accenture PLC Price | Accenture PLC Quote
Bottom Line
Accenture’s long-term prospects look promising due to its sustained focus on innovative product launches, continuous investments in enhancing digital and marketing capabilities, as well as major acquisitions. Moreover, we believe that regular acquisitions will significantly contribute to the company's revenue stream.
The stock currently carries a Zacks Rank #3 (Hold).
A better-ranked stock worth considering in the consulting industry is NV5 Global, Inc. (NVEE - Free Report) which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share growth rate for NV5 Global is 20%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>