In a bid to strengthen its Product Lifecycle Management (PLM)
) has planned to acquire PRION Group, a Siemens PLM software
implementation partner. The financial details of the deal, which
would be Accenture's eighth acquisition to date in 2013, were not
Headquartered in Stuttgart, Germany, PRION Group provides
value added services that range from PLM Strategy & Process
Consultancy, PLM System & Data Migration, PLM Application
Implementation to PLM Operation / Managed Services.
PRION Group boasts a strong clientele from diversified sectors
such as automotive, transportation to aerospace & defense and
consumer goods. It's clients include
Procter & Gamble
), Alstom, Audi and B/E Aerospace to name a few.
With the PRION acquisition, Accenture will not only expand its
product portfolio but also gain traction in the PLM segment.
Moreover, the combined forces of both the companies will deliver
products and services to their customers in a faster, efficient
and cost effective manner.
Accenture opined that manufacturing companies spend
of their revenues on product development and innovation. Thus,
this presents Accenture with an ample opportunity to solidify and
expand its position in the PLM segment.
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 a
strong demand for Accenture's services, which is in turn
favorable for its long-term growth prospects.
However, increasing competition from
Cognizant Technology Solutions
International Business Machines Corp.
), a strained spending environment and Accenture's broad European
exposure (roughly 40.0%) may temper its growth prospects to some
Accenture carries a Zacks Rank #3 (Hold).
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