Consulting and outsourcing company
) completed the acquisition of PRION Group, a Siemens PLM
software implementation partner. The acquisition of PRION Group
is expected to strengthen Accenture's Product Lifecycle
Management (PLM) services segment. The PRION acquisition,
announced on Aug 12, 2013, marks Accenture's eighth acquisition
With the PRION acquisition, Accenture will not only expand its
product portfolio but also gain traction in the PLM segment.
Moreover, the combined strength of the companies will facilitate
faster and more efficient delivery of products and services to
their customers in a cost effective manner.
Accenture said that manufacturing companies spend
approximately a quarter of its revenues on product development
and innovation. Thus, this presents Accenture with ample
opportunities to solidify and expand its position in the PLM
PRION Group boasts a strong clientele from diversified sectors
such as automotive and transportation to aerospace & defense
and consumer goods. Its clients include
Procter & Gamble
), Alstom, Audi and B/E Aerospace to name a few.
Accenture is making an effort to enter different business
segments and improve its technological base through
Acquisitions have not only expanded Accenture's customer base
but have also improved its bookings and performance in the
insurance, banking and healthcare sectors. This also reflects the
effectiveness of Accenture's services, which is in turn favorable
for its long-term growth prospects.
Moreover, in the recently concluded quarter, Accenture
recorded higher bookings growth and solid performance across
insurance, banking and healthcare segments. Additionally, the
company's associations with
) and Telenor for providing IT services are expected to benefit,
However, increasing competition from
Cognizant Technology Solutions
) and 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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