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Accenture (ACN) Snaps Up Nextira, Bolsters Cloud Capabilities

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Accenture plc (ACN - Free Report) announced yesterday that it has acquired Texas-based information technology consulting services provider, Nextira. The financial terms of the transaction are kept under wraps.

Founded in 2008, Nextira is an Amazon Web Services (“AWS”) Premier Partner offering cloud-native innovation, predictive analytics and immersive experiences.

Nextira’s cloud-based solutions help clients design, develop, launch and optimize high-performance computing environments. Its proprietary Studio in the Cloud solution on AWS provides clients with a virtual environment for developing and rendering 3D objects using the latest rendering platforms.

The Acquisition to Strengthen Accenture Cloud First

Nextira, with around 70 staff, will move to Accenture AWS Business Group, which is part of Accenture Cloud First. The buyout is expected to strengthen Accenture Cloud First’s engineering capabilities and help clients utilize cloud capabilities and tools more efficiently.

Karthik Narain, global lead for Accenture Cloud First said, "We will combine Nextira’s AI, machine learning, and data and analytics abilities with Accenture’s approach to using modern data platforms on cloud. This will deliver the actionable insights and predictive outcomes that our clients need to create new applications and services, deliver innovative customer and employee experiences and fuel their next wave of product and market growth."

The move seems to be part of Accenture’s strategy of enhancing its cloud capabilities. Considering the growing need for cloud-based applications and software, we expect its investments in this space to propel long-term growth.

Shares of the company have gained 15% in the past three months, outperforming the 12.3% rally of the industry it belongs to and the 6.1% growth of the Zacks S&P 500 composite.

Zacks Rank & Stocks to Consider

Accenture currently carries a Zacks Rank #3 (Hold). Investors interested in the Zacks Business Services sector can consider the following stocks.

Green Dot (GDOT - Free Report) : GDOT currently sports a Zacks Rank #1 (Strong Buy) and has a VGM score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company has an impressive earning surprise history, beating the consensus mark in all the four trailing quarters. The company has an average surprise of 37.3%.

Maximus (MMS - Free Report) : MMS has a VGM score of A and a Zacks Rank of 2 (Buy).

The company has an impressive earning surprise history, beating the Zacks Consensus Estimate in three of the trailing four quarters and missing once, the average surprise being 9.6%.


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