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Accenture to Acquire Partners in Performance to Deliver Enhanced Productivity for Asset-Intensive Industry Clients

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Accenture (NYSE: ACN) is set to acquire Partners in Performance, a global strategy consulting firm specializing in business performance improvement for asset-intensive industries like metals, mining, and oil and gas. The acquisition aims to enhance Accenture's capabilities in cost and productivity optimization, capital project delivery, and energy transition efforts. Partners in Performance brings expertise in sustainable value creation and advanced analytics, aiding C-suite leaders in navigating complex business environments. Approximately 400 employees of Partners in Performance will join Accenture Strategy. The terms of the acquisition remain undisclosed and are subject to regulatory approvals.

Positive
  • Enhanced capabilities in asset-intensive industries like metals, mining, oil and gas.
  • Strengthened focus on cost and productivity optimization.
  • Boosted delivery of capital projects.
  • Accelerated energy transition and decarbonization efforts.
  • Addition of 400 experienced employees to Accenture Strategy.
  • Use of advanced analytics and AI tools for sustainable value creation.
  • Recognition of Partners in Performance as one of Australia's Most Innovative Companies.
  • Improved ability to help clients achieve sustainability targets.
Negative
  • Terms of the acquisition are not disclosed, creating uncertainty for investors.
  • Transaction is subject to regulatory approvals which might delay completion.

Accenture's acquisition of Partners in Performance is strategically significant for the firm’s operations in asset-intensive industries. For investors, this move could enhance the company's service offerings, particularly in sectors such as metals, mining, oil, gas, utilities and chemicals. By integrating Partners in Performance's expertise in data and AI capabilities, Accenture is likely aiming to drive growth and improve cost efficiencies for clients.

Short-term implications might include increased operational costs due to the integration process, though these are typically offset by the long-term benefits of improved service capabilities. Long-term, successful integration could lead to enhanced revenue growth and diversification, driving shareholder value. Investors should weigh this against potential integration risks and the challenges of aligning different corporate cultures and systems.

Given the trend towards sustainability and energy transition in asset-intensive industries, Accenture's bolstered capabilities in these areas position it favorably to capture market demand. This acquisition aligns with the broader industry trend towards digitization and sustainable practices, promising robust growth potential.

This acquisition represents a significant push by Accenture into the realm of high-value consulting services tailored to asset-intensive industries. By leveraging Partners in Performance's established methodologies and tools, Accenture can offer more specialized and effective solutions. This could create a competitive edge, particularly in the consultancy market where deep industry-specific knowledge and capabilities are highly prized.

The focus on sustainability and decarbonization is pertinent given the increasing regulatory pressures and shifting market expectations towards greener operations. This positions Accenture not just as a technology and strategy powerhouse but as a forward-thinking entity capable of addressing modern environmental and regulatory challenges.

For retail investors, this means Accenture is likely to see continued and possibly accelerated growth in its consultancy arm, especially if it can effectively market and deploy these enhanced capabilities. The potential for increased client retention and new client acquisition adds a positive outlook for the company’s future performance.

NEW YORK & SYDNEY--(BUSINESS WIRE)-- Accenture (NYSE: ACN) has agreed to acquire Partners in Performance, a global strategy consulting firm that works on business performance improvement in asset-intensive industries leveraging data and AI capabilities. Partners in Performance will strengthen Accenture’s offering to clients in industries such as metals and mining, oil and gas, utilities, and chemicals among others, by bolstering cost and productivity reinvention, delivery of capital projects, as well as accelerating energy transition and decarbonization efforts.

Accenture has agreed to acquire Partners in Performance, a global strategy consulting firm that works on business performance improvement in asset-intensive industries leveraging data and AI capabilities. (Graphic: Business Wire)

Accenture has agreed to acquire Partners in Performance, a global strategy consulting firm that works on business performance improvement in asset-intensive industries leveraging data and AI capabilities. (Graphic: Business Wire)

Partners in Performance has proven expertise in delivering sustainable value for clients in asset-intensive industries; helping C-suite leaders generate long-term growth for their companies by delivering lasting impact and greater resilience using its proprietary data, benchmarks and advanced analytics tools.

“Delivering profitable growth with the backdrop of significantly higher levels of disruption caused by technology and macroeconomic factors requires leaders in the C-suite and beyond to have partners that help navigate this prevailing complexity and expanding uncertainty,” said Muqsit Ashraf, chief executive for Accenture Strategy. “The acquisition of Partners in Performance within Accenture Strategy will elevate our strategic advisory and execution capabilities, powered by data and AI, that help clients boost business and sustainability performance in existing operations and new capital programs.”

Partners in Performance’s approximately 400 employees will join Accenture Strategy. Partners in Performance was founded in Melbourne in 1996, with its management and consulting professionals now operating across five continents. The firm has been recognized as one of Australia’s Most Innovative Companies and for its role helping clients achieve their sustainability targets.

Asset-intensive clients need to pursue strategies for decarbonization without compromising on business growth objectives,” said Stephanie Jamison, global resources industry practice lead and global sustainability services lead at Accenture. “Partners in Performance’s expertise will be invaluable as we collaborate with clients to help them leverage digital capabilities and new ways of working to improve operational performance in areas such as supply chain, decarbonization and capital projects.”

Skipp Williamson, founder and managing director at Partners in Performance added: “Our focus has been on helping organizations have big lasting impact. We are excited to combine our joint strengths with Accenture for our clients across the world and to bring them even better lasting impact.”

Terms of the transaction were not disclosed. Completion of the acquisition is subject to customary closing conditions, including receipt of regulatory approvals.

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 Insight Sourcing 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; 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.

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.

Copyright ©2024 Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture.

Alexander Aizenberg

Accenture

+1 917 452 9878

alexander.aizenberg@accenture.com

Kate Maher

Accenture

+61 405 778 205

kathryn.a.maher@accenture.com

Source: Accenture

FAQ

What is the focus of Accenture's acquisition of Partners in Performance?

Accenture's acquisition of Partners in Performance focuses on enhancing capabilities in asset-intensive industries, cost and productivity optimization, capital project delivery, and energy transition efforts.

How many employees will join Accenture from Partners in Performance?

Approximately 400 employees from Partners in Performance will join Accenture Strategy.

What industries will benefit from Accenture's acquisition of Partners in Performance?

Industries such as metals and mining, oil and gas, utilities, and chemicals will benefit from the acquisition.

What expertise does Partners in Performance bring to Accenture?

Partners in Performance brings expertise in sustainable value creation, advanced analytics, and helping clients achieve business growth and sustainability targets.

What regulatory steps are needed to complete the acquisition of Partners in Performance by Accenture?

The acquisition is subject to customary closing conditions, including receipt of regulatory approvals.

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