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Accenture bolsters high-tech capabilities with Teamexpat buy

EditorNatashya Angelica
Published 24/05/2024, 08:10 am
© Reuters
ACN
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EINDHOVEN, Netherlands - Global professional services company Accenture (NYSE: NYSE:ACN) has announced the acquisition of Teamexpat, a specialist in embedded software for high-tech industries, aiming to enhance its digital engineering services. Teamexpat, founded in 2014 and based in Eindhoven, the Netherlands, is known for its work in developing, testing, and integrating software for semiconductor lithography systems.

The acquisition is set to strengthen Accenture's ability to offer smart, connected product capabilities to clients in the semiconductor sector, as well as other discrete manufacturing industries. The Teamexpat staff will join Accenture’s digital engineering team in the Netherlands, bringing with them their embedded software engineering expertise.

Frank Rennings, leader of Accenture’s digital engineering and manufacturing service, Industry X, in the Netherlands, highlighted the growing importance of software in product development across various industries, including semiconductor, high tech, aerospace, automotive, and medical technology. He noted that Teamexpat's capabilities would be instrumental in helping clients reinvent their businesses with smart, connected products and services.

Guido D’hert, Accenture’s High Tech industry lead in Europe, mentioned the significance of embedded software expertise in the context of the European government’s €43 billion incentive for semiconductor innovation. He emphasized Teamexpat’s role in supporting clients' innovation in embedded systems and complex mechatronics.

Vinay Dasa, CEO and founder of Teamexpat, expressed enthusiasm for the new opportunities that joining Accenture will bring for both clients and the Teamexpat team, citing Accenture’s global footprint and expertise as a platform for scaling embedded software development projects.

Accenture's recent acquisitions in the field of embedded software and digital engineering include umlaut, ESR Labs, and VanBerlo, demonstrating the company's commitment to expanding its capabilities in these areas. The terms of the Teamexpat transaction were not disclosed.

This expansion comes at a time when Accenture is actively responding to changes in technology and offering adaptation to maintain and grow client demand for its services and solutions. The company, with approximately 742,000 employees serving clients in more than 120 countries, emphasizes its role in driving technological change and delivering tangible outcomes for its clients.

Investors and industry observers will be watching closely to see how Accenture integrates Teamexpat's expertise into its existing services and the impact this will have on the company's offerings in the high-tech sector. The information reported here is based on a press release statement.

InvestingPro Insights

As Accenture (NYSE: ACN) fortifies its digital engineering capabilities with the acquisition of Teamexpat, investors are taking note of the company's strategic moves and financial health.

Accenture's market capitalization stands at a robust $193.14 billion, reflecting its significant presence in the professional services sector. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is 27.47, which might indicate a premium valuation given its role as a prominent player in the IT Services industry.

Accenture's commitment to shareholder returns is evidenced by its track record of raising dividends for four consecutive years, with a current dividend yield of 1.68%. This is part of a longer history of maintaining dividend payments for 20 consecutive years, showcasing the company's financial stability and dedication to returning value to its shareholders. The company's ability to manage its dividends effectively is further supported by its cash flows, which can sufficiently cover interest payments.

Investors looking for further insights on Accenture can explore additional InvestingPro Tips, including the company's trading patterns and analyst predictions. For instance, while Accenture is trading at a high Price / Book multiple of 7.12, indicating a potentially high valuation relative to its book value, it's important to note that the company is also expected to be profitable this year.

Such insights can be critical for investors considering the company's growth prospects and market positioning. Accenture has 11 more InvestingPro Tips available, which can be accessed for a deeper analysis of its performance and potential investment opportunities. To enhance your research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

With the next earnings date slated for June 27, 2024, stakeholders will be keenly observing how the integration of Teamexpat's expertise will influence Accenture's future earnings reports and overall market performance.

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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