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Accenture (ACN) Set to Gain From End-to-End Analytics Buyout

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Accenture plc (ACN - Free Report) recently announced that it has inked a deal to acquire End-to-End Analytics, a boutique analytics and data science consultancy. The deal’s closure is subject to customary closing conditions. Financial terms of the deal have been kept under wraps.

Founded in 2005, End-to-End Analytics is engaged in the development of data and analytics strategy, and the application of optimization, machine learning and AI on a broad range of technology platforms. With more than 70 employees, the company has a solid portfolio of assets and accelerators in the areas of supply chain, forecasting, trade promotion, pricing, marketing, and customer analytics. It is mainly engaged in the high tech, retail, industrial, automotive and consumer goods industries. The company is based out of Palo Alto, CA, and has additional offices in Brazil.

End-to-End Analytics will be joining Accenture’s Applied Intelligence practice.

So far this year, shares of Accenture have gained 18.7% compared with 15% rise of the industry it belongs to and 11.2% growth of the Zacks S&P 500 composite.

 

How Will Accenture Benefit?

End-to-End Analytics’ solid industry and functional expertise and integrated consulting model approach (which combines analytics, business acumen, and technology) is expected to help Accenture strengthen its capabilities in the analytics, data, and AI space. Together, they should reach out to a broader client base across North and South America.

Saleem Janmohamed, senior managing director and U.S. West market unit lead, Accenture, stated, "Together, End-to-End Analytics and Accenture will bring clients industry and functional depth, unmatched AI and analytics capabilities and a proven track record of delivering business results."

Notably, Sanjeev Vohra, global lead at Accenture Applied Intelligence, stated, "By adding End-to-End Analytics to Accenture Applied Intelligence, we look forward to scaling their unique approach to data science blended with our functional consulting practice to help our clients navigate the pace of change and gain more business value from their data and AI investments."

Accenture’s prior initiatives in strengthening its analytics, data, and AI business globally included the acquisitions of Analytics8 in Australia, PragsisBidoop in Spain, Clarity Insights in North America, Mudano in the United Kingdom, Byte Prophecy in India, and Sentelis in France.

Zacks Rank and Stocks to Consider

Accenture currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Business Services sector are Heidrick & Struggles International (HSII - Free Report) , Automatic Data Processing (ADP - Free Report) and Insperity (NSP - Free Report) , each carrying 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 (three to five years) growth rate for Heidrick & Struggles International, Automatic Data Processing and Insperity is 10%, 12% and 15%, respectively.

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