Accenture plc (ACN - Free Report) yesterday announced that it has inked a deal to acquire Symantec’s Cyber Security Services business from Broadcom, Inc. (AVGO - Free Report) . Financial terms have been kept under wraps. Subject to customary closing conditions, the deal is expected to close in March 2020.
Symantec’s Cyber Security Services provide global threat monitoring and analysis through a network of security operation centers, real-time adversary and industry-specific threat intelligence and incident response services. It has six security operations centers located in the United States, the United Kingdom, India, Australia, Singapore and Japan. With more than 300 employees globally, the company serves a wide range of industries, including financial services, utilities, health, government, communications, media, technology and retail.
Over the past year, shares of Accenture have gained 39.8% compared with 33.9% growth of the industry it belongs to and 24.5% increase of the Zacks S&P 500 composite.
A Move to Strengthen Accenture Security
The deal closure will see the addition of Symantec’s Cyber Security Services business to Accenture Security. This will strengthen Accenture Security’s position as one of the leading providers of comprehensive managed services for global businesses aimed at detecting and managing their cybersecurity threats.
Given the increasing rate of cyber threats, cybersecurity has become one of the major business criterions every company is focusing on, irrespective of industry or geographic location. The deal, thus, seems to be a strategic move on Accenture’s part to strengthen its foothold in the cybersecurity business.
Kelly Bissell, senior managing director at Accenture Security stated, "This acquisition is a game-changer and will help Accenture provide flexibility rather than a ‘one size fits all’ approach to managed security services. With Symantec’s Cyber Security Services business, we can now bring clients our combined expertise fine-tuned to their industry with tailored global threat intelligence powered by advanced analytics, automation and machine learning.”
Accenture Security’s prior initiatives of investing in latest technologies to enhance its cybersecurity solutions included the acquisitions of Deja vu Security, iDefense, Maglan, Redcore, Arismore and FusionX.
Notably, the tech-giant invested $1.2 billion on 33 acquisitions in fiscal 2019 across the globe.
Zacks Rank & Other Stocks to Consider
Currently, Accenture carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are S&P Global (SPGI - Free Report) and Booz Allen Hamilton (BAH - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term expected EPS (three to five years) growth rate for S&P Globaland Booz Allen Hamilton is 10%and 13%, respectively.
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