Accenture plc (ACN - Free Report) is strengthening its Industry X.0 capabilities with the help of strategic acquisitions.
The company recently completed the purchase of San Francisco-based hardware engineering firm, Mindtribe. It has also inked a deal to acquire Columbus-based smart embedded software company, Pillar Technology.
Mindtribe specializes in creating innovative connected hardware, integrated with digital services. Pillar Technology develops embedded software that are used in smart, connected products.
Boosts Industry X.0 Suite
Accenture’s Industry X.0 deals with digital technologies, software development, product engineering, user experience and product design. The two buyouts are expected to boost Accenture Industry X.0’s design, innovation and product development capacities, which help companies address the shift to digitalization.
The company’s prior initiatives in strengthening Industry X.0 globally include the acquisition of Germany-based design consulting agency, designaffairs on Aug 6, opening of a new Industry X.0 innovation hub in Metro Detroit on Jun 4 and purchase of Boston-based product design and innovation firm, Altitude on Jan 9, 2017.
Enhanced Footprint in North America
The acquisitions should also complement Accenture’s robust growth in the North America region. In the first nine months of 2018, the region contributed the largest chunk (around 45%) to the company’s net revenues and grew 8.9% year over year to $13.1 billion. Revenues from North America increased almost 15% from fiscal 2015 to fiscal 2017.
We believe Accenture’s acquisitions strategy, which helps it broaden its product portfolio, market share and boost revenues, gives it an edge over competitors like Genpact (G - Free Report) , Cognizant Technology Solutions (CTSH - Free Report) and Infosys (INFY - Free Report) .
The company’s long-term prospects look promising, given its sustained focus on innovative product rollouts, continued investments in enhancing digital and marketing capabilities and cloud suite.
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