Accenture plc ACN has completed the acquisition of Wolox, an Argentina-based cloud native and development company providing digital solutions.
Founded in 2012, Wolox specializes in transforming industries through technology. It offers integrated services such as digital business design, product creation and agile squads. It has multidisciplinary teams of industry and business experts, UX/UI designers, software designers, architects and engineers. The company employs more than 280 professionals.
Over the past year, shares of Accenture have gained 21.3% compared with 19.6% rise of the industry it belongs to and 15% growth of the Zacks S&P 500 composite.
How Will Accenture Benefit?
The acquisition should help Accenture strengthen its cloud and digital transformation capabilities in Argentina and South America. Inclusion of the Wolox team should boost the global capabilities of Accenture Cloud First.
Notably, Karthik Narain, global lead for Accenture Cloud First, stated, "The acquisition of Wolox brings differentiated skills to Accenture, as the team uniquely blends cloud native development with design and state-of-the-art technologies for business transformation."
Sergio Kaufman, president of Accenture Argentina and Hispanic South America, stated, "By pairing Accenture’s global expertise with Wolox’s regional talent and capabilities, this acquisition strengthens our ability to help clients accelerate business transformation using cloud technologies and deliver measurable business value."
He further added, “We will integrate Wolox across Accenture’s services, including Strategy & Consulting, Interactive, Technology and Operations, enabling us to deliver 360 degree value for our clients, people, shareholders, partners and communities."
Zacks Rank and Stocks to Consider
Accenture currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are ManpowerGroup MAN, Huron Consulting HURN and NV5 Global NVEE, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Huron Consulting and NV5 Global is 3.5%, 14% and 16.8%, respectively.
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