Accenture Federal Services (AFS), a unit of
) recently completed the acquisition of ASM Research, Inc.
Accenture had announced the acquisition of ASM Research on Jul
31, 2013. ASM Research, the advanced information solutions and
services provider is also a wholly-owned subsidiary of AFS.
Financial details of the deal were not disclosed.
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The acquisition will help Accenture to expand the services that
it provides to the Department of Defense (DoD) and Veterans
Moreover, through this acquisition, Accenture will be able to
utilize the thirty years of experience ASM Research has in the
government vertical, as well as its expertise in healthcare IT,
information solution and services, data analytics, cloud
computing, human capital management and agile software
A recent survey by Accenture conducted among 3,700 Doctors in
eight countries (Australia, Canada, England, France, Germany,
Singapore, Spain and the United States) indicated a growing
demand for healthcare IT.
Among Accenture's operating segments, Health & Public Service
revenues increased 11% in local currency, which reflected
significant growth in healthcare segment. Health administration
and related health aids were the primary growth drivers. The
company reported total net revenue of $7.2 billion (foreign
exchange impact was negative 2.5%) in the third quarter of 2013,
roughly flat with $7.15 billion reported in the year-ago quarter.
The recent acquisitions have helped Accenture enter different
business segments and improve its technological base. The company
has also been able to improve its customer base, bookings and
performance in the insurance, banking and healthcare sectors.
This also reflects strong demand for Accenture's services, which
is in turn favorable for its long-term growth prospects.
However, increasing competition from companies like
Cognizant Technology Solutions Corp.
), a strained spending environment and exposure to Europe remain
Currently, Accenture carries a Zacks Rank #4 (Sell). Investors
should instead consider other technology stocks such as
Arrow Electronics, Inc.
), which has a Zacks Rank #1(Strong Buy).