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Accenture to Acquire OPENSTREAM HOLDINGS to Help Clients Advance Their Data-Driven Business Reinvention

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Accenture (NYSE: ACN) has announced its acquisition of OPENSTREAM HOLDINGS and its subsidiaries, Open Stream and Neutral. This strategic move aims to enhance Accenture's capabilities in cloud, AI, smart logistics, retail, and manufacturing. This acquisition will add around 1,000 digital experts to Accenture’s teams, improving support for clients in adopting advanced digital technologies. Open Stream's 600 professionals offer services in logistics and retail, while Neutral's 400 experts specialize in system integration in the automotive and manufacturing sectors. This acquisition aligns with Accenture's strategy to expand its digital engineering and manufacturing capabilities in Japan.

Positive
  • Acquisition will add approximately 1,000 digital experts to Accenture’s teams.
  • Strengthens capabilities in cloud, AI, smart logistics, retail, and manufacturing sectors.
  • Enhances support for client adoption of advanced digital technologies.
  • Open Stream and Neutral bring strong client portfolios and automation solutions.
  • Open Stream’s low-code development platforms serve over 2,800 companies.
  • Neutral specializes in system integration in the automotive and manufacturing industries.
Negative
  • Terms of the transaction were not disclosed, creating some uncertainty.
  • Completion of the acquisition is subject to customary closing conditions, posing potential delays.

Accenture's acquisition of OPENSTREAM HOLDINGS is a strategic move that aims to enhance its capabilities in cloud, AI, smart logistics, retail and manufacturing domains. This deal will add approximately 1,000 digital experts to Accenture’s teams, which can have a significant impact on the company’s operational efficiency and client offerings.

For investors, this acquisition suggests that Accenture is committed to expanding its technological and digital engineering capabilities. The integration of Open Stream and Neutral will likely bolster Accenture's market position in Japan and other APAC countries, potentially leading to market share growth. The focus on data-driven business reinvention aligns well with current industry trends, where companies are increasingly relying on cloud and AI solutions for competitive advantage.

However, it's important to note that the financial terms of the deal have not been disclosed. This adds an element of uncertainty regarding the return on investment (ROI) and how it might affect Accenture's financials in the short term. Historically, Accenture has shown a pattern of strategic acquisitions to enhance its service portfolio and if this acquisition follows suit, it could be a positive for long-term growth.

The integration process will be crucial; synergies between Accenture and OPENSTREAM's subsidiaries must be effectively managed to realize the full potential of the acquisition. Investors should monitor upcoming quarterly reports for updates on integration progress and financial performance post-acquisition.

The acquisition will notably enhance Accenture's capabilities in cloud computing, AI, IoT and cybersecurity, areas where Open Stream specializes. For instance, the inclusion of low-code development platforms can significantly streamline production and logistics management for clients, leading to quicker deployment and reduced operational costs.

Accenture’s Industry X service, which integrates digital technologies into industrial processes, will benefit immensely from Open Stream's expertise in smart factories and logistics. The addition of Neutral’s experience in 3D CAD and CAE solutions, as well as AI-powered predictive maintenance tools, will enhance Accenture's offerings in the automotive and manufacturing sectors.

From a technical perspective, this acquisition is poised to strengthen Accenture’s ability to offer end-to-end solutions, from system modernization to advanced digital integrations. This can translate into more comprehensive service packages for clients, potentially resulting in higher client retention and acquisition rates.

However, the integration of different technologies and teams poses a risk. Ensuring compatibility and seamless integration will be critical for maximizing value. Investors should look for specific updates on how these technological capabilities are being integrated into Accenture’s existing infrastructure.

The acquisition provides Accenture with a robust foothold in the Japanese market, supported by Open Stream and Neutral’s established client portfolios in logistics, retail, automotive and manufacturing. Japan's market is known for its emphasis on precision and quality and aligning Accenture's expertise with market expectations can create substantial growth opportunities.

This acquisition aligns with the broader trend of digital transformation sweeping across industries. Companies increasingly invest in cloud, AI and IoT to stay competitive and Accenture’s enhanced capabilities will likely position it as a preferred partner in this digital evolution.

Moreover, this move can be seen as a strategic response to the growing demand for automation solutions. By integrating Open Stream's low-code platforms and Neutral's AI-powered tools, Accenture can offer innovative, efficient solutions that cater to the evolving needs of businesses globally.

While the acquisition strengthens Accenture's market position, it also comes with challenges. The success of this strategic move will depend on how well Accenture can integrate the acquired entities and leverage their expertise to drive business outcomes. Investors should watch for market reactions and the company's performance in the upcoming quarters to assess the acquisition's true impact.

OPENSTREAM HOLDINGS’ subsidiaries, Open Stream and Neutral will strengthen Accenture’s cloud, AI, smart logistics, retail and manufacturing capabilities

NEW YORK & TOKYO--(BUSINESS WIRE)-- Accenture (NYSE: ACN) has agreed to acquire OPENSTREAM HOLDINGS and its subsidiaries, Open Stream and Neutral, to help clients reinvent their businesses with advanced digital technologies and become truly data-driven. Terms of the transaction were not disclosed.

Accenture has agreed to acquire OPENSTREAM HOLDINGS and its subsidiaries, Open Stream and Neutral, to help clients reinvent their businesses with advanced digital technologies and become truly data-driven. (Graphic: Business Wire)

Accenture has agreed to acquire OPENSTREAM HOLDINGS and its subsidiaries, Open Stream and Neutral, to help clients reinvent their businesses with advanced digital technologies and become truly data-driven. (Graphic: Business Wire)

The acquisition will add approximately 1,000 cloud and other digital experts to Accenture’s cloud and digital engineering and manufacturing teams. They will strengthen Accenture’s capabilities to support clients in system and application modernization and help them adopt cloud, data, AI and IoT technologies. They will also enhance Accenture’s business by bringing a strong client portfolio and automation solutions for the entire product value chain, from procurement and manufacturing processes to logistics and after-sales service.

Open Stream, with a team of 600 professionals, provides consulting and systems integration services, and advanced technologies, including cloud, AI, IoT and cybersecurity, for logistics and retail industries. The firm also offers low-code development platforms for production management, inventory management, logistics and accounting systems used by more than 2,800 companies, and solutions for smart factories. Open Stream became part of OPENSTREAM HOLDINGS in 2020.

Neutral and its 400 professionals specialize in system integration in the automotive and the manufacturing industries. The firm has built strong credentials in manufacturing management, 3D computer-aided design and computer-aided engineering solutions for the manufacturing industry, system integration of electronic medical records for medical institutions, system integration for local governments, and AI-powered forecasting, root cause analysis and predictive maintenance tools. Neutral joined OPENSTREAM HOLDINGS in 2021.

“With OPENSTREAM HOLDINGS, we can better help our clients reinvent their businesses and become truly data-driven,” said Atsushi Egawa who leads Accenture’s business in Japan. “The cloud and digital expertise that OPENSTREAM HOLDINGS, Open Stream and Neutral possess aligns perfectly with Accenture’s broad capabilities and deep experience in cloud, data and AI. Open Stream’s and Neutral’s talent, solutions and client relationships with manufacturing and logistics companies will also strengthen our Industry X service. Our shared culture and strategy of embracing change will allow us to help Japanese companies scale faster and achieve value quicker.”

“Under our group vision of 'continuously challenging the norm', OPENSTREAM HOLDINGS has been attuned to changes in society and the market, contributing to the creation of a future society enabled by advanced digital technologies,” said Kazuhiko Yoshihara, Representative Director & President of OPENSTREAM HOLDINGS. “Recognizing the accelerated pace of digital reinvention, we aim to be a constant presence that galvanizes the industry by walking together with our clients. Accenture is a company that has realized similar ideals across industries and borders. By joining together, we can further leverage the achievements and experiences we have built in a wide range of fields and contribute to the creation of a better future society.”

By acquiring OPENSTREAM HOLDINGS and its subsidiaries, Accenture continues to invest in its technology and digital engineering and manufacturing capabilities in Japan. In April, the company acquired CLIMB, a technology services provider for system integration, IT infrastructure management and operations, primarily in the Gunma Prefecture. In January, Accenture established a joint venture with MUJIN to bring AI and robotics to the manufacturing and logistics industries. In 2022, it added Trancom ITS’ digital engineering and operational technology capabilities to its Industry X business. In 2021, it acquired DI Square’s consulting capabilities for product lifecycle management (PLM) and application lifecycle management (ALM) systems integration.

Completion of the acquisition is subject to customary closing conditions.

About Accenture

Accenture is a leading global professional services company that helps the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale. We are a talent- and innovation-led company with approximately 742,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world’s leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability. We are uniquely able to deliver tangible outcomes because of our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients reinvent and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our shareholders, partners and communities. Visit us at www.accenture.com.

Forward-Looking Statements

Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture and OPENSTREAM HOLDINGS will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for Accenture; Accenture’s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; Accenture’s environmental, social and governance (ESG) commitments and disclosures may expose it to reputational risks and legal liability; if Accenture does not successfully manage and develop its relationships with key ecosystem partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; as a result of Accenture’s geographically diverse operations and strategy to continue to grow in key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

Kentaro Kanda

Accenture

+81 3 3588 3000

accenture.jp.media@accenture.com

Source: Accenture

FAQ

What is the significance of Accenture acquiring OPENSTREAM HOLDINGS?

The acquisition enhances Accenture's capabilities in cloud, AI, logistics, retail, and manufacturing, adding around 1,000 experts to its teams.

How many professionals are being integrated into Accenture through this acquisition?

Approximately 1,000 professionals from Open Stream and Neutral will join Accenture.

What industries will benefit from Accenture's acquisition of OPENSTREAM HOLDINGS?

The acquisition will benefit the cloud, AI, smart logistics, retail, automotive, and manufacturing industries.

What are the specialties of Open Stream and Neutral?

Open Stream specializes in logistics and retail, while Neutral focuses on system integration in automotive and manufacturing.

What is the impact of this acquisition on Accenture's operations in Japan?

The acquisition strengthens Accenture's digital engineering and manufacturing capabilities in Japan.

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Accenture plc is an Irish-American professional services company based in Dublin, specializing in information technology services and consulting. A Fortune Global 500 company, it reported revenues of $61.6 billion in 2022.