Accenture To Boost Interactive Footprint With Rothco Buyout

Accenture Plc (NYSE:ACN) recently entered into a definitive agreement for the buyout of Rothco, an Irish creative agency based out of Dublin. This will mark the10th acquisition for Accenture this year and the 18th inorganic addition to its kitty in the last three years.

The terms of the acquisition were not disclosed and the deal is also subject to customary closing conditions. Rothco’s strategic planning and designing for impactful communications campaigns are expected to strengthen Accenture Interactive’s footprint in the UK and Ireland, thereby improving customer experience. Accenture also plans to expand Rothco’s presence internationally.

Rothco is also inclined toward enhancing the technological impact on creative procedure to optimize brand experience. Moreover, its impressive clientele that has the likes of Tesco (LON:TSCO) and Heineken is also anticipated to be beneficial for Accenture’s top line going ahead.

Accenture stock has gained 29.1% year to date, outperforming the 25.9% rally of the industry it belongs to.

Accenture’s Inorganic Growth Trajectory

Accenture pursues strategic acquisitions to diversify its offerings and expand operating markets. The company closed 37 acquisition deals worth approximately $1.7 billion in fiscal 2017. Also, over the last three fiscals, Accenture has invested approximately $3.4 billion in acquiring nearly 70 companies including start-ups. These acquisitions have helped the company enhance its product offerings and penetrate into newer markets, thereby contributing to the company’s top line.

Most recently, the company signed an agreement with Altima to add to its digital marketing capabilities. Another notable acquisition in this domain was that of Karmarama, which also aided the company in adding a major client namely luxury car manufacturer Maserati to its client base.

Other Strategic Initiatives

Apart from acquisitions, Accenture’s strategic partnerships with companies like Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) , Oracle (NYSE:ORCL) and Salesforce (NYSE:CRM) have also been key catalysts. Recently, the company entered into a partnership with Apple (NASDAQ:AAPL). These have helped the company in strengthening its product portfolio.

These partnerships have also helped the company to boost its presence across segments like IT security, customer relationship management and consulting, thereby enhancing its revenues. We expect the company to carry the momentum going forward backed by its sustained focus on operational efficiency.

Zacks Rank

Accenture has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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