Accenture plc ACN is gearing up to strengthen its Financial Services suite through its latest acquisition.
The tech-giant yesterday announced a deal to acquire Orbium - a Switzerland-based management consultancy and technology services provider to the financial services industry.
Orbium specializes in helping private banks and wealth managers improve their performance by aligning their business strategies effectively with their operating model and technology architecture. It is the largest provider of Avaloq Banking Suite - a digital and core banking software - which is widely used by more than 150 banks and wealth managers globally. With more than 500 employees, Orbium has operations across Europe, Asia Pacific and the United States.
The deal closure is subject to fulfillment of customary closing conditions. The financial terms of the deal have been kept under wraps.
We observe that shares of Accenture have declined 8.3% in the past year compared with 5.6% fall of the industry it belongs to and 6.8% decline of the Zacks S&P 500 composite.
Accenture serves the banking, capital markets and insurance industries through its Financial Services segment.
Orbium's global workforce and expertise in delivering Avaloq-enabled business transformation projects should help Accenture provide enhanced services to its clients in the private banking and wealth management space globally.
Considering the shift in the wealth management industry from high-cost, inflexible in-house and legacy solutions to packaged core platforms, software-as-a-service and business process outsourcing, the deal seems to be a strategic move on Accenture's part to strengthen its presence in the industry.
We believe Accenture's acquisitions strategy, which helps it broaden its product portfolio, market share and boost revenues, gives it an edge over competitors like Genpact G , Cognizant Technology Solutions CTSH and Infosys INFY . Currently, Accenture is a Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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