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Accenture (ACN) Subsidiary Completes Acquisition of Cognosante

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Accenture plc (ACN - Free Report) shares have gained 5% in the past year compared with the 12% rally of the industry it belongs to.

The company’s subsidiary Accenture Federal Services announced yesterday that it has completed the acquisition of Virginia-based digital transformation and cloud modernization solutions provider Cognosante. The financial terms of the deal have been kept under wraps.

Founded in 2008, Cognosante employs a team of 1,500 professionals and specializes in providing technology solutions to federal government clients. These include healthcare programs that support veterans, active-duty military personnel, patients, beneficiaries, providers, and payors. Cognosante is known for its expertise in technology, cloud modernization and migration, and program management.

A New Federal Health Portfolio in Focus

Through this acquisition, Accenture Federal Services is establishing a new federal health portfolio. This portfolio aims to deliver specialized mission solutions to enhance health outcomes and create more accessible and equitable healthcare experiences for all.

Commenting on the acquisition, Accenture Federal Services CEO John Goodman said, "With the addition of Cognosante’s industry-leading people and capabilities, and by continuing to draw upon Accenture’s proven commercial innovation in health, life sciences, and insurance, Accenture Federal Services will accelerate impact for our clients and offer greater career growth opportunities for our people as a result of this acquisition."

The acquisition represents a significant step forward in Accenture’s strategy to enhance its public service offerings, particularly in the rapidly evolving healthcare sector. By combining forces, Accenture and Cognosante are well-positioned to lead the charge in transforming public healthcare services through cutting-edge technology and innovative solutions.

Zacks Rank and Stocks to Consider

Accenture currently carries a Zacks Rank #4 (Sell).

A couple of better-ranked stocks in the broader Zacks Business Services sector are Aptiv (APTV - Free Report) and Booz Allen Hamilton (BAH - Free Report) .

Aptiv currently carries a Zacks Rank #2 (Buy). APTV has a long-term earnings growth expectation of 16.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 12.2%.

Booz Allen Hamilton carries a Zacks Rank #2 at present. BAH has a long-term earnings growth expectation of 12.6%.

The company delivered an earnings surprise of 12.6%, on average, surpassing the Zacks Consensus Estimate in three of the trailing four quarters and missing once.

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