Accenture (ACN) to Gain From CS Technology Buyout: Here’s How
Accenture plc ACN announced that it has completed the purchase of CS Technology, a technology firm and provider of infrastructure transformation services. Financial terms of the deal have been kept under wraps.
Established in 1992, CS Technology is specialized in cloud infrastructure engineering with strength across infrastructure and cloud planning, critical facilities design, data center, and modern workplace technologies. The company serves Fortune 2000 clients across multiple sectors, including financial services, retail and pharmaceutical. It is headquartered in New York and has offices in London, Melbourne and Sydney.
So far this year, shares of Accenture have gained 14.8% compared with 14.7% rise of the industry it belongs to and 15% growth of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
How Will Accenture Benefit?
The buyout marks the addition of more than 100 professionals with expertise in cloud, workplace, project management and engineering from CS Technology into Accenture. These extensive capabilities complement and enhance Accenture’s Cloud First services in helping clients meet their increasing demands for digital, cloud and data center hosting and hybrid working environments.
The deal is expected to boost Accenture Cloud First’s capabilities in infrastructure engineering as well as Accenture’s portfolio of cloud services.
Karthik Narain, global lead of Accenture Cloud First, stated, "Accenture’s acquisition of CS Technology expands the hybrid cloud infrastructure capabilities our clients need to become cloud-first enterprises and realize value faster."
Zacks Rank and Other Stocks to Consider
Accenture currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader Zacks Business Services sector include Interpublic IPG, Gartner IT and Charles River CRAI, each carrying a Zacks Rank #2.
Long-term (three to five years) expected earnings per share growth rate for Interpublic, Gartner and Charles River is projected at 10.2%, 13.5% and 15.5%, respectively.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Accenture PLC (ACN) : Free Stock Analysis Report
Charles River Associates (CRAI) : Free Stock Analysis Report
Interpublic Group of Companies, Inc. The (IPG) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
Gloss