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Accenture (ACN) Announces Closure of umlaut Acquisition

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Accenture plc (ACN - Free Report) announced last Friday that it has completed the acquisition of umlaut. The company had announced the deal on Jun 14.

Umlaut is the 23rd acquisition since 2017 that focuses on strengthening and expanding the capabilities of Accenture’s Industry X. The Aachen, Germany-based engineering consulting and services firm adds 4,200 engineers and consultants to Industry X services, enhancing its engineering capabilities across automotive, aerospace & defense, telecommunications, energy and utilities industries.

The buyout places Accenture in a better position to address the pandemic-induced growing demand to apply data and digital in the processes of designing, engineering and manufacturing products. It increases the company’s quality of assistance toward companies using artificial intelligence, cloud and 5G technology to improve the quality and sustainability of their production processes.

Over the past year, Accenture’s shares have gained 43%, underperforming the 52.3% growth of the industry it belongs to but outperforming the 29.6% growth of the Zacks S&P 500 composite.

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) , Cross Country Healthcare (CCRN - Free Report)  and Genpact Limited (G - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Cross Country Healthcare and Genpact is pegged at 24.2%, 9.9% and 14.7%, respectively.