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Accenture Takes Over avVenta

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Accenture Plc’s (ACN - Analyst Report) acquisition-driven growth strategy remains on track with the company recently acquiring a digital production services vendor avVenta Worldwide. Accenture closed the acquisition without disclosing the terms of the agreement.

The digital production services offered by Accenture to the chief marketing officers (CMOs) with the help of Accenture Interactive will be augmented following the integration of avVenta’s digital production solutions. Accenture will be using avVenta’s delivery center in San Jose to provide cost effective solutions to clients.

To be more specific, customers will benefit from the marriage of the digital production facility from avVentas digital production platform and other design processes offered by Accenture’s Interactive marketing operations. As a result, CMOs are expected to reap higher returns from their investments in marketing activities.

Moreover, the avVenta acquisition will provide Accenture with instant access to the former’s experienced staff along with the list of 130 Fortune 500 clients spread across the  pharmaceutical, financial services and consumer packaged goods industries.

Earlier this month, Accenture wrapped up the acquisition of Octagon Research Solutions Inc., a reputed software solutions provider into the life sciences market. The company also picked up the Singapore-based distributor management and mobility software company NewsPage Pte Ltd. in late August.

The NewsPage Pte Ltd. acquisition is expected to strengthen the Accenture CAS software platform, which assists in the sales procedure of companies in the consumer goods industry, particularly with respect to their distributor management.

We believe that improvement in the order book along with recovery in the financial services market may have a positive impact on revenue going forward.

We are encouraged by Accenture’s strategy to grow through acquisitions. However, increasing competition from IBM Corp. (IBM - Analyst Report), a strained spending environment and Accenture’s broad European exposure (roughly 40.0%) may impact its growth prospects to some extent.

The company has a Zacks #2 Rank, implying a short-term Buy rating.

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