Back to top

Image: Bigstock

Accenture (ACN) to Buy Cygni, Cloud First Strategies in Focus

Read MoreHide Full Article

Shares of Accenture plc (ACN - Free Report) have gained a massive 79.2% over the past year, outperforming the 76.3% rally of the industry it belongs to and 62.9% rise of the Zacks S&P 500 composite.

The company recently announced that it has agreed to acquire cloud-native full-stack development firm Cygni. The deal is subject to customary closing conditions and financial terms of the same have been kept under wraps.

Founded in 2006, Stockholm-based Cyngi is a provider of advanced technical software development services and innovative technical solutions. The company employs around 190 developers. It has offices across Sweden in places like Linkoping, Gothenburg, Ostersund, Malmoe and Lulea, and also in Amsterdam, Netherlands.

How Will Accenture Benefit?

The buyout is expected to improve global capabilities of Accenture Cloud First, the company’s new multi-service group of 70,000 cloud professionals, and a $3-billion investment over three years aimed at quick expansion of cloud service capabilities and offerings.

According to Joel Hofgren, Cloud Infrastructure & Engineering lead at Accenture Sweden, “Modern software development capabilities are critical to unleashing the transformational power of cloud and adding the exceptional talents of the Cygni team will help propel us forward in realizing our Cloud First ambitions.”

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 Omnicom (OMC - Free Report) , Charles River Associates (CRAI - Free Report) and Gartner (IT - 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 Omnicom, Charles River and Gartner is 4.7%, 13% and 13.5%, respectively.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.

Click here for the 4 trades >>

Published in