Accenture Acquires Two Firms in October YTD

/ October 20, 2019/ Accenture, M&As (small under $50m in revenues), Pharma, UK, US

It has been almost three years since Accenture launched Industry X.0, and we estimate that Accenture acquired nine competitors in these 36 months. The pace is accelerating with Accenture having five competitors in 2019, YTD.

Patterns are now emerging: Accenture makes tuck-in acquisitions, targeting firms with a headcount below 250. So far, Accenture has favored two geographies (the US and UK) and product design and product engineering services (PES), working across verticals (except for one German automotive specialist). In total, Accenture has acquired 1,300 employees in product design and PES, targeting mostly B2C clients.

The industrial world, in terms of client base and vertical-specific capabilities, seems less of a priority for the firm, with Accenture making only one acquisition in digital manufacturing, with an Irish firm specialized in MES. This lack of activity in digital manufacturing is a surprise given that growth on the manufacturing side is accelerating.

Finally, browsing through the many acquisitions of Accenture, we realized that we had left out of the picture Accenture’s software product engineering capabilities. Accenture has those capabilities in a unit called Products and Platform Engineering Services, which seems different from Industry X.0. Products and Platform Engineering Services is at scale, with Accenture highlighting it has 8,000 employees in this unit. In itself, this headcount positions Accenture as a decently-sized ER&D service vendor.

Accenture’s Industry X.0 Acquisitions

DateName / Location
Size
Capabilities
2019-10Happen / London, UK
Below 200 employees
Product design services for the CPG, retail, and life science industries
Joins Products Industry X.0
2019-10 Nytec / Kirkland, WA
250 employees
IoT devices and product development services across industries
Joins Accenture Industry X.0
2019-08Fairway Tech / San Diego, CA
80 employees
Software product engineering services
Joins Accenture’s Product and Platform Engineering Services (which has a headcount of 8,000)
2019-06Zielpuls / Munich, Germany
190 employees
Services including automated car parking and ADAS architectures for the German automotive industry
Joins Accenture Industry X.0
2019-05ESP / Cork, Ireland
200 employees
MES services for the life science industry
Joins Accenture Industry X.0
2019-04?What If!, London, UK
150 employees
Focus on brand and customer engagement
Joins Products Industry X.0
2018-08Pillar Tech / Columbus, OH
320 employees
Embedded software development
Joins Accenture Industry X.0
2018-08Mindtribe / San Francisco, CA
40 employees
Hardware engineering services to the high-tech industry
Joins Accenture Industry X.0
2018-08designaffair / Munich, Germany
100 employees
Product design services
Joins Accenture Industry X.0
2017-01Altitude / Boston, MA
Product design services to the CPG, healthcare and high-tech industries
Joins Accenture’s Connected Product Lifecycles Services practice

Source: ERDservices.org

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