Accenture Expands Retail Tech Capabilities with Logic Information Systems Acquisition

Accenture to enhance retail tech with Logic acquisition By Investing.com

NEW YORK - Accenture (NYSE: NYSE:ACN) has announced its intention to acquire Logic, a retail technology service provider, to bolster its retail technology capabilities. Logic, known for its expertise in enhancing customer loyalty and agility for retailers through technology, will bring approximately 800 professionals to Accenture Technology's already extensive pool of talent. Founded in 1997 and based in Minneapolis, Minnesota, Logic has a footprint in 11 countries, serving over 150 retail clients globally. This acquisition is poised to enhance Accenture's services in merchandising, digital, analytics, and cloud, aiming to help retail clients navigate the challenges of a rapidly evolving marketplace. Jill Standish, Accenture's global Retail industry practice lead, emphasized that the integration of Logic's specialized skills will augment Accenture's ability to deliver comprehensive and transformative retail solutions. Bill Szlaius, Co-Founder & CEO of Logic, expressed confidence that joining forces with Accenture would accelerate their mission and expand their reach, benefiting their clients and team. Karthik Narain, group chief executive - Technology at Accenture, highlighted that the acquisition would enrich Accenture's digital, data, and cloud capabilities, further empowering the company to deliver impactful outcomes for clients. The acquisition, which is subject to customary closing conditions including regulatory approvals, has not had its terms disclosed. The completion of the transaction will mark a strategic step for Accenture in its commitment to assisting retailers in their technological transformations. The information provided in this article is based on a press release statement. In other recent news, Accenture has demonstrated steady growth in its Third Quarter Fiscal 2024 Earnings Conference Call, disclosing a revenue of $16.5 billion, marking a 1.4% increase in local currency, and an operating margin improvement to 16.4%. New bookings saw a substantial increase, totaling $21.1 billion. Furthermore, the company's GenAI business reached $2 billion in sales year-to-date, indicating Accenture's emphasis on large-scale transformations, particularly in artificial intelligence. Accenture has recently expanded its silicon design capabilities with the acquisition of Cientra, a firm specializing in custom silicon solutions. This strategic move aims to meet the growing demand for semiconductor innovation, driven by advancements in various technological sectors. The integration of Cientra's skilled engineers will enhance Accenture's existing silicon design experience. On the analyst front, Morgan Stanley (NYSE:MS) adjusted its stance on Accenture, moving from an Overweight to an Equal-weight rating, citing concerns of a slowdown in cloud revenue growth and an increase in mergers and acquisitions spending relative to free cash flow. Goldman Sachs (NYSE:GS), on the other hand, initiated coverage on Accenture shares with a Neutral rating, acknowledging the company's strong position in generative AI but also citing potential cyclical economic headwinds. For the upcoming 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. As Accenture (NYSE: ACN) gears up to enhance its retail technology services through the acquisition of Logic, the company's financial health and market position provide a backdrop for understanding this strategic move. With a market capitalization of $199.11 billion and a Price to Earnings (P/E) ratio of 28.61, Accenture stands as a substantial entity in the IT Services industry, indicating its capacity to undertake and integrate such significant acquisitions. InvestingPro data shows that Accenture has a Price to Book (P/B) ratio of 7.18 as of the last twelve months ending Q3 2024, which suggests the stock is trading at a premium compared to its book value, a reflection of the market's high regard for the company's assets and potential for future growth. Additionally, the company has demonstrated a steady revenue growth of 1.46% over the same period, underscoring its ability to increase earnings - a key factor that could be further bolstered by the Logic acquisition. Accenture's commitment to shareholder returns is evident with a dividend yield of 1.62% and a noteworthy track record of maintaining dividend payments for 20 consecutive years. This consistency, coupled with a dividend growth of 15.18% in the last twelve months as of Q3 2024, aligns with the InvestingPro Tip that the company has raised its dividend for 4 consecutive years, showcasing financial stability and a shareholder-friendly approach. For those looking to delve deeper into Accenture's financial metrics and gain additional insights, there are 10 more InvestingPro Tips available, which can be found at: https://www.investing.com/pro/ACN. Readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a more comprehensive view of the company's financial landscape and investment potential.

Accenture to Enhance Retail Technology Transformation Capabilities with the Acquisition of Logic

Accenture (NYSE: ACN) has entered into an agreement to acquire Logic, a retail technology services firm that works with retailers to drive customer loyalty, boost revenue and increase agility through the use of technology. With strong capabilities in merchandising, stores, digital, analytics and cloud, the acquisition of Logic will further enhance Accenture's ability to drive technology transformations for retail clients globally. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240712832662/en/ With a deep understanding of the retail industry and operational management, Logic will bring approximately 800 professionals with specialized skills in retail-focused technical strategies to Accenture Technology. Founded in 1997 and headquartered in Minneapolis, Minnesota, Logic has offices in 11 countries that serve more than 150 retail clients worldwide. "Business disruption is intensifying and requires retailers to embrace a strategy of continuous reinvention to deliver value across every part of the business with digital technology at the core," said Jill Standish, global lead of Accenture's Retail industry practice. "The addition of Logic's expertise and industry-specific skills will further enhance our ability to deliver comprehensive retail solutions and drive transformative outcomes for our clients to thrive is this dynamic marketplace." Bill Szlaius, Co-Founder & CEO, Logic said, "For more than 25 years, our focus at Logic has been helping our retail clients move faster, innovate smarter and thrive in the face of retail disruption. Joining Accenture will enable us to expand our reach and accelerate our mission, providing even greater value to our clients and unlocking new growth opportunities for our talented team." Logic will expand Accenture's retail capabilities with the addition of essential skills in core technologies and platforms, as well as artificial intelligence (AI) and generative AI, to drive innovation for clients. This strategic move underscores Accenture's commitment to helping retailers transform their organizations with technology so that they can better navigate the evolving retail landscape with confidence. "Today, all business strategies lead to technology. Companies will need to transform every part of their enterprise using cloud, data, and AI to optimize operations and accelerate growth," said Karthik Narain, group chief executive - Technology at Accenture. "Logic's digital, data and cloud capabilities, coupled with its deep industry experience, will complement Accenture Technology's capabilities and further expand our ability to deliver impactful results to our clients." Completion of the acquisition is subject to customary closing conditions, including receipt of regulatory approvals. Terms of the transaction were not disclosed. Forward-Looking Statements Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "likely," "anticipates," "aspires," "expects," "intends," "plans," "projects," "believes," "estimates," "positioned," "outlook," "goal," "target" and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture and Logic will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties' ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for Accenture; Accenture's results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company's clients' businesses and levels of business activity; Accenture's business depends on generating and maintaining client demand for the company's services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company's results of operations; if Accenture is unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, the company's business, the utilization rate of the company's professionals and the company's results of operations may be materially adversely affected; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture's ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture does not successfully manage and develop its relationships with key ecosystem partners or fails to anticipate and establish new alliances in new technologies, the company's results of operations could be adversely affected; Accenture's profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture's level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company's effective tax rate, results of operations, cash flows and financial condition; Accenture's results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; as a result of Accenture's geographically diverse operations and strategy to continue to grow in key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture's business could be materially adversely affected if the company incurs legal liability; Accenture's global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture's work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture's services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the "Risk Factors" heading in Accenture plc's most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture's expectations. About Accenture Accenture is a leading global professional services company that helps the world's leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services -- creating tangible value at speed and scale. We are a talent- and innovation-led company with approximately 750,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world's leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability. We are uniquely able to deliver tangible outcomes because of our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients reinvent and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our shareholders, partners and communities. Visit us at www.accenture.com.

Accenture buys retail tech services firm (NYSE:ACN)

Financial terms of the transaction were not disclosed. Completion of the acquisition is subject to customary closing conditions, including receipt of regulatory approvals. Founded in 1997, Logic is a retail technology services firm that works with retailers to drive customer loyalty, boost revenue, and increase agility. It employs around 800 professionals across offices in 11 countries that serve more than 150 retail clients worldwide. The deal will expand Accenture's (ACN) retail capabilities with the addition of essential skills in core technologies and platforms, as well as artificial intelligence and generative AI, to drive innovation for clients. It marks the fourth acquisition announced by the IT firm since the start of July.