) acquisition-driven growth strategy remains on track with the
company recently acquiring a digital production services vendor
avVenta Worldwide. Accenture closed the acquisition without
disclosing the terms of the agreement.
The digital production services offered by Accenture to the
chief marketing officers (CMOs) with the help of Accenture
Interactive will be augmented following the integration of
avVenta's digital production solutions. Accenture will be using
avVenta's delivery center in San Jose to provide cost effective
solutions to clients.
To be more specific, customers will benefit from the marriage of
the digital production facility from avVentas digital production
platform and other design processes offered by Accenture's
Interactive marketing operations. As a result, CMOs are expected to
reap higher returns from their investments in marketing
Moreover, the avVenta acquisition will provide Accenture with
instant access to the former's experienced staff along with the
list of 130 Fortune 500 clients spread across the
pharmaceutical, financial services and consumer packaged goods
Earlier this month, Accenture wrapped up the acquisition of
Octagon Research Solutions Inc., a reputed software solutions
provider into the life sciences market. The company also picked up
the Singapore-based distributor management and mobility software
company NewsPage Pte Ltd. in late August.
The NewsPage Pte Ltd. acquisition is expected to strengthen the
Accenture CAS software platform, which assists in the sales
procedure of companies in the consumer goods industry, particularly
with respect to their distributor management.
We believe that improvement in the order book along with
recovery in the financial services market may have a positive
impact on revenue going forward.
We are encouraged by Accenture's strategy to grow through
acquisitions. However, increasing competition from
), a strained spending environment and Accenture's broad European
exposure (roughly 40.0%) may impact its growth prospects to some
The company has a Zacks #2 Rank, implying a short-term Buy
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