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Accenture bolsters planning capabilities with Allitix buy

Published 11/04/2024, 12:32 PM
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NEW YORK - Accenture (NYSE: NYSE:ACN) has announced the acquisition of Allitix, a consulting firm specializing in Anaplan (NYSE:PLAN) business planning solutions. This move aims to enhance Accenture's connected planning capabilities and support its clients in standardizing planning practices for improved agility and data-driven decision-making.

Allitix, established in 2017 and headquartered in Irvine, California, is recognized as a trusted partner of Anaplan, a platform designed to assist organizations in better business planning and outcomes. Allitix brings to the table expertise across various functions including finance, sales, supply chain, and human resources, with a particular focus on industries such as manufacturing, consumer goods, technology, media, telecom, and financial services.

David Leckstein, senior managing director at Accenture, emphasized the rising demand for connected enterprise planning and the value it brings in driving enterprise reinvention. He noted that Allitix’s skilled talent and agile implementation approach complement Accenture's digital capabilities, enhancing the company's ability to deliver integrated enterprise planning transformations.

The acquisition adds 73 employees to Accenture Technology in North America, including over 60 Anaplan functional and technical professionals with deep expertise in solution architecture, model building, integration, and data management.

Mark Ishikawa, founder and managing partner of Allitix, expressed enthusiasm for joining Accenture, citing a shared vision for transforming organizational operations through connected planning. The integration of Allitix's Anaplan expertise with Accenture's global reach and technology capabilities is expected to provide clients with unmatched expertise and support.

The financial terms of the transaction were not disclosed.

This strategic acquisition by Accenture is part of its ongoing effort to expand its services and solutions in response to technological advancements and market needs. The information is based on a press release statement.

In other recent news, Accenture Federal Services, a subsidiary of Accenture, secured a $1.6 billion Air Force contract to enhance the U.S. Air Force’s multi-cloud Cloud One environment. The contract, which extends up to five years and three months, will see Accenture provide cloud account services and enterprise-scale software support. In a strategic move, Accenture also invested in Reality Defender, a cybersecurity firm specializing in deepfake detection, to boost defenses for clients against deepfake fraud.

Accenture has also collaborated with Google (NASDAQ:GOOGL) Public Sector to establish the 'Federal AI Solution Factory,' a hub for the development and testing of AI solutions for federal agencies. The acquisition of Joshua Tree Group, a specialized supply chain consulting firm, is another key development, aimed at boosting productivity and efficiency in distribution centers.

Financially, Accenture reported record bookings of $81 billion and revenue of $65 billion in fiscal year 2024, in addition to completing the sale of notes totaling approximately $4.99 billion. Analysts from Mizuho Securities, TD Cowen, and BMO Capital have responded positively to these developments, with TD Cowen upgrading Accenture's rating from Hold to Buy. These are the recent developments that investors should take note of.

InvestingPro Insights

Accenture's acquisition of Allitix aligns with its position as a prominent player in the IT Services industry, as highlighted by InvestingPro Tips. This strategic move is likely to contribute to the company's robust financial performance, which is reflected in its impressive market capitalization of $214.46 billion.

The company's focus on enhancing its digital capabilities through acquisitions like Allitix is consistent with its strong revenue growth. According to InvestingPro Data, Accenture's revenue for the last twelve months as of Q4 2024 stood at $64.89 billion, with a quarterly revenue growth of 2.63% in Q4 2024. This growth trajectory supports the company's ability to invest in strategic acquisitions and expand its service offerings.

InvestingPro Tips also reveal that Accenture has maintained dividend payments for 20 consecutive years and has raised its dividend for 5 consecutive years. This demonstrates the company's financial stability and commitment to shareholder returns, which may be attractive to investors looking for consistent income. The current dividend yield stands at 1.71%, as per InvestingPro Data.

For investors seeking more comprehensive insights, InvestingPro offers 12 additional tips for Accenture, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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