Accenture (ACN) Completes Context Information Security Buyout

Accenture plc (NYSE:ACN) has completed the acquisition of Context Information Security — a U.K.-based cyber defense consultancy firm — from Babcock International Group (LON:BAB). Financial terms of the deal have been kept under wraps.

Founded in 1998, Context Information Security offers high-end cyber defense, intelligence-driven red team, vulnerability research and incident response services. The company has been engaged in dealing with some of the most advanced incident response cases in the industry. It serves a number of industries including financial services, government, aerospace & defense, critical infrastructure and others.

A Move to Ramp Up Accenture Security Services

Context has joined the cyber defense offerings under Accenture Security. The acquisition has brought in more than 250 highly skilled professionals from Context who will strengthen Accenture Security’s existing portfolio and help it better serve clients. Having additional offices in Germany, the United States and Australia should also strengthen Accenture Security’s business globally.

Given the increasing rate of cyber threats, cybersecurity has become one of the major business criterions every company is focusing on, irrespective of industry or geographic location. The deal, thus, seems to be a strategic move on Accenture’s part to strengthen its foothold in the cybersecurity business.

Kelly Bissell, a senior managing director at Accenture, who leads Accenture Security, stated, "This acquisition is an excellent match for us, combining a group of highly skilled cybersecurity professionals globally while providing differentiated services to clients in the U.K. market."

Nick Taylor, UKI lead at Accenture Security, stated, "Context has a remarkable set of cybersecurity skills, capabilities and reputation in the U.K. as well as in the international financial services industry to complement the growth we have already driven for more than a decade in this market."

Accenture Security’s prior initiatives of investing in latest technologies to enhance its cybersecurity solutions included the deal to acquire Symantec’s Cyber Security Services business from Broadcom (NASDAQ:AVGO), along with the acquisitions of Deja vu Security, iDefense, Maglan, Redcore, Arismore and FusionX.

Zacks Rank & Stocks to Consider

Currently, Accenture carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Interpublic (NYSE:IPG) , Omnicom (NYSE:OMC) and Genpact (NYSE:G) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected EPS (three to five years) growth rate for Interpublic, Omnicom and Genpact is 4.5%, 5.6% and 11.9%, respectively.

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