Accenture (ACN - Free Report) recently announced that it has completed the acquisition of engineering services provider, Fairway Technologies. The financial terms of the deal have been kept under wraps.
Founded in 2002, Fairway Technologies has offices in San Diego and Irvine, CA and Austin, Texas. It has more than 80 skilled professionals.
So far this year, we observe that shares of Accenture have gained 39.6% compared with 31.6% rise of the industry it belongs to and 13% increase of the Zacks S&P 500 composite.
Deal Details & Benefits
Fairway Technologies and Accenture Product and Platform Engineering Services business will together help clients manage and innovate software-based platforms; amplify platform value by scaling and enhancing digital platforms (which introduce business models and revenue streams) while delivering quality engineering services.
We believe the move will help Accenture strengthen its Communications, Media & Technology segment, through its Software & Platforms industry group, which serves computer software and digital platform companies. Revenues from the segment increased 7% year over year on a reported basis and 11% in terms of local currency in the first nine months of fiscal 2019.
Ram Ramalingam, managing director at Accenture’s Product and Platform Engineering Services, stated, “This acquisition will help Accenture continue to make next generation platform technology a reality for our clients.”
Zacks Rank & 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-ranked stocks in the broader Zacks Business Services sector are FLEETCOR (FLT - Free Report) , Huron Consulting (HURN - Free Report) and Fiserv (FISV - Free Report) , each carrying a Zacks Rank #2 (Buy). Long-term expected EPS (three to five years) growth rate for FLEETCOR, Huron Consulting and Fiserv is 15.6%, 13.5% and 12%, respectively.
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