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Accenture (ACN) to Benefit From Wabion Buyout: Here's How

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Accenture plc (ACN - Free Report) announced that it has inked a deal to purchase Wabion, a Google cloud services provider. Completion of the deal is subject to customary closing conditions. Financial terms have been kept under wraps.

Founded in 2004, Wabion provides a wide variety of consulting and implementation services for Google Cloud Platform and Google Workspace solution, including integration, development, licensing and training. The company has experience working on cloud migrations, cloud-native app development to build new cloud-based solutions, and on Google Workspace deployments for online collaborations and workforce productivity. The company is headquartered in Esslingen (Germany) and Olten (Switzerland), and has additional offices in Munich, Cologne (Germany) and Lausanne (Switzerland).

So far this year, shares of Accenture have gained 19.7% compared with 20.9% rise of the industry it belongs to and 17.5% growth of the Zacks S&P 500 composite.

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How Will Accenture Benefit?

The deal closure will see the joining of Wabion’s more than 60 professionals into Accenture’s Google Cloud Business Group, a part of Accenture Cloud First.

Considering the growing need of cloud applications and technology innovations, the latest deal is expected to strengthen Accenture’s competitive position in the market.

Karthik Narain, global lead at Accenture Cloud First, stated, "Wabion’s market-leading Google Cloud skills will further strengthen Accenture Cloud First to continue to combine the best of Google human-centric design and innovation with Accenture intelligence."

Frank Riemensperger, market unit lead at Accenture in Germany, Austria, Switzerland and Russia, stated, "Acquiring Wabion strengthens both our global and local Cloud First capabilities, enabling clients throughout our region to create more value and accelerate their digital transformations. The combination of Wabion’s expertise with Accenture’s industry knowledge and end-to-end business transformation experience will help clients within the DACH market tap into local talent in addition to the vast resources of our Accenture Google Cloud Business Group."

Zacks Rank and Other Stocks to Consider

Accenture currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-rankedstocks in the broader Zacks Business Services sector include Paychex (PAYX - Free Report) , Interpublic (IPG - Free Report) and Atento S.A , each carrying a Zacks Rank #2.

Long-term (three to five years) expected earnings per share growth rate for Paychex, Interpublic and Atento is projected at 8%, 10.2% and 12%, respectively.


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