NEW YORK & BENGALURU, India - In a strategic move to bolster its silicon design and engineering services, Accenture (NYSE: NYSE:ACN) has acquired Cientra, a company specializing in custom silicon solutions. The financial terms of the deal, which was announced earlier this week, remain undisclosed.
Cientra, established in 2015 with headquarters in New Jersey and additional offices in Frankfurt, Bangalore, Hyderabad, and New Delhi, is recognized for its consulting expertise in embedded IoT and application-specific integrated circuit (ASIC) design and verification.
This acquisition is set to enhance Accenture's existing silicon design experience and support the growing demand for semiconductor innovation, which is being driven by advancements in data centers, cloud computing, wireless technology, edge computing, and artificial intelligence.
Karthik Narain, Group Chief Executive of Technology at Accenture, emphasized the acquisition's role in expanding the company's silicon design and engineering capabilities to better serve their clients' needs in the face of increasing data computing requirements.
The integration of Cientra brings approximately 530 skilled engineers and practitioners to Accenture's Advanced Technology Centers in India, adding substantial experience in engineering, development, and testing across various sectors, including automotive, telecommunications, and high-tech industries.
Anil Kempanna, CEO of Cientra, expressed optimism about the growth and global expansion opportunities provided by joining Accenture, for both their clients and employees.
Accenture's acquisition of Cientra follows close on the heels of the company's recent purchase of Excelmax Technologies, a semiconductor design services provider based in Bangalore, India, earlier this week, and last year's acquisition of XtremeEDA, a silicon design services company headquartered in Ottawa, Canada.
Accenture is a global professional services firm that specializes in digital transformation, with a workforce of approximately 750,000 people serving clients across more than 120 countries. The company is known for its comprehensive range of services and solutions across various domains, including Strategy & Consulting, Technology, Operations, Industry X, and Song.
This article is based on a press release statement.
In other recent news, Accenture reported a steady growth in its Third Quarter Fiscal 2024 Earnings Conference Call, with revenue reaching $16.5 billion, marking a 1.4% increase in local currency. The company's operating margin improved to 16.4%, and new bookings saw a substantial increase, totaling $21.1 billion. Accenture's GenAI business reached $2 billion in sales year-to-date, indicating the company's focus on large-scale transformations, particularly in artificial intelligence.
Morgan Stanley adjusted its stance on Accenture, moving from an Overweight to an Equal-weight rating, and lowered the price target to $300. This decision incorporates concerns of a slowdown in cloud revenue growth, minimal short-term revenue impact from Generation AI technologies, and an increase in mergers and acquisitions spending relative to free cash flow.
Goldman Sachs initiated coverage on Accenture shares with a Neutral rating and a price target set at $335.00. The firm acknowledges Accenture's strong position in the field of generative AI but also cites the possibility of cyclical economic headwinds that may impact the company's performance in the short term.
Accenture made 12 acquisitions, amassing a capital investment of $2.3 billion. For Q4 fiscal 2024, Accenture projects its revenue to be between $16.05 billion and $16.65 billion, indicating 2% to 6% growth in local currency. The full fiscal year 2024 growth is expected to be between 1.5% and 2.5% in local currency, with operating cash flow forecasted to be between $9.3 billion and $9.9 billion.
InvestingPro Insights
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