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Accenture (ACN) to Gain From fable+ Acquisition: Here's How

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Accenture plc(ACN - Free Report) has completed the acquisition of fable+, a consulting firm engaged in analytics-driven transformation. Financial terms of the deal have been kept under wraps.

fable+ specializes in providing a healthy, trust-based, agile work culture, coupled with psychological safety. By leveraging their proprietary cloud-based app to measure psychological safety and team performance, fable+ can measure key culture factors which improves performance across different levels of an organization. The company used to advise a number of clients, including startups, SMEs and multinationals. It is located in Mannheim and Berlin.

Over the past year, shares of Accenture have gained 68.6% compared with 67.5% rise of the industry it belongs to and 59.8% growth of the Zacks S&P 500 composite.

How Will Accenture Benefit?

The acquisition marks the joining of fable+’s team of 50 professionals into Accenture’s Talent & Organization/Human Potential team. This should help Accenture expand its analytics-driven transformation and workplace culture capabilities.

Christie Smith, global lead for Talent & Organization / Human Potential at Accenture, stated, "fable+’s methodologies will enable our clients to shape their workplace culture and support the growth of agile and resilient teams that are central to sustainable businesses growth."

Frank Riemensperger, market unit lead for Accenture in Germany, Austria, Switzerland and Russia, stated, "Using AI and cloud technology, fable+ pioneered an analytics-driven approach to better understand workplace culture and team performance. This acquisition enables us to scale and grow innovative services that help clients create effective working environments to address their individual challenges."

Further, fable+ complements Accenture’s Talent & Organization/Human Potential’s latest acquisitions - Cirrus on Mar 1, Future State in February and Kates Kesler in 2020. All of them have been enhancing Accenture’s existing C-suite offerings through new methodologies while also helping generate offerings based on client needs and market challenges.

Zacks Rank and Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Business Services sector are ManpowerGroup (MAN - Free Report) , Huron Consulting (HURN - Free Report) and NV5 Global (NVEE - Free Report) , each carrying a Zacks Rank #2 (Buy).

The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Huron Consulting and NV5 Global is 3.5%, 14% and 16.8%, respectively.

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