In a bid to expand its capabilities in Europe,
) is set to acquire ClientHouse, a provider of cloud-based
services. Financial details of the deal were not disclosed.
ClientHouse is one of the leading Cloud Alliance Partners of
), as well as Veeva Systems, which provides cloud-based services
to biotech companies. Also, ClientHouse is the first authorized
training center for Salesforce.com in Europe.
With this acquisition, Accenture will be in a better position to
leverage the latest technology for its clients, provide enhanced
performance and strengthen its position as a global leader in
Software as a Service (SaaS) based applications and as a provider
of salesforce.com services. The acquisition will also help
Accenture to improve its customer relationships and expand market
share by solving business critical issues.
Moreover, Accenture can leverage ClientHouse's core competencies
in cloud-based CRM solutions to gain new clients.
Accenture resorts to strategic acquisitions to diversify its
offerings and expand its operating markets. A strong cash balance
($4.53 billion) and operating cash flow ($181.0 million in the
first quarter of 2014) enable the company to make frequent
Accenture is also building its client base, which has helped it
to record strong bookings and witness robust growth across
insurance, banking and healthcare segments. This also increases
demand for Accenture's services, which is favorable for its
However, a cautious spending environment and Accenture's broad
European exposure may temper growth prospects to some extent.
Moreover, competition from
Cognizant Technology Solutions Corp.
International Business Machines
) is expected to remain a headwind, going forward.
Currently, Accenture has a Zacks Rank #2 (Buy).
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