In a bid to strengthen its Enterprise Performance Management
) acquired U.K.-based EPM provider PureApps. The financial details
of the deal have not been disclosed.
EPM is a financial management solution which helps firms to
streamline operations by efficient cost controlling measures and
execute organizational strategies. PureApps' EPM solutions are
) Hyperion Enterprise Performance Management and Business Analytics
products. PureApps' clientele includes Bacardi - Martini Ltd.,
British American Tobacco and Carpetright plc. With this
acquisition, Accenture will gain a foothold in the U.K. EPM market
and expand its capabilities in other European countries as
EPM solutions are in demand today because of the need to
increase operational efficiencies. They are also used to forecast
business results. These features help the companies to strategize
and implement critical business decisions to cope with rapidly
Incidentally, Accenture's last acquisition of Enkitec on May 15
expanded its expertise in Oracle engineered systems. Enkitec was an
Oracle Platinum partner and specialized in delivering Oracle
database technologies and engineering systems to its clients.
Thus, the PureApps acquisition will enable the company to build
its expertise leveraging Oracle's systems. Accenture is also
building its client base, which has helped it to record strong
bookings and witness robust growth across insurance, banking and
It is worth noting that Accenture resorts to strategic
acquisitions to diversify its offerings and expand its operating
markets. A strong cash balance ($3.63 billion) and operating cash
flow ($292.4 million in second-quarter 2014) enable the company to
engage in frequent acquisitions. PureApps is Accenture's fourth
acquisition in calendar year 2014.
However, increasing competition from
Cognizant Technology Solutions
International Business Machines
), a strained spending environment and Accenture's broad European
exposure may temper its growth prospects to some extent.
Currently, Accenture has a Zacks Rank #3 (Hold).
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