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Here's What Accenture (ACN) Will Gain From Imaginea Acquisition

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Accenture plc’s (ACN - Free Report) shares have gained 18.2% over the past year, outperforming the 17.7% rally of the industry it belongs to and 16.8% rise of  the Zacks S&P 500 composite.

The company recently announced acquisition of cloud-native product and platform engineering firm Imaginea for an undisclosed amount. Imaginea currently has more than 200 global clients whom it advises on how to achieve cloud-first transformations.

Around 1,350 cloud professionals from Imaginea, highly skilled in cloud data and cloud modernization, will join Accenture Cloud First. Notably, Accenture had unveiled plans to invest $3 billion in Cloud First over three years, in September 2020.

How Will Accenture Benefit?

Through the acquisition, Accenture Cloud First will be in a position to leverage Imaginea’s cloud-native and product engineering skills to enhance its global capabilities that enable clients across any industry transform to cloud-first businesses.

The buyout will help Accenture create value for its clients by helping them to drive innovation more efficiently and manage complex changes as well.

Zacks Rank and Stocks to Consider

Accenture currently carries a Zacks Rank #3 (Hold).

Some better-ranked service stocks are SailPoint Technologies (SAIL - Free Report) , NV5 Global (NVEE - Free Report) and TeleTech Holdings (TTEC - 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 SailPoint, NV5 Global and TeleTech is 15%, 18% and 19.4%, respectively.

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