Accenture plc ACN has announced that it has acquired Madrid, Spain-based engineering services firm Arca for an undisclosed amount.
Addition of Arca’s 640 employees to Accenture will strengthen the company’s 5G deployment and network operations capabilities in Spain and Portugal.
Founded in 1988, Arca offers multidisciplinary services for network operations pertaining to engineering, designing, deployment and management of telecom infrastructure. These services are backed by an integrated platform that helps in automation of network monitoring, optimization of processes and prediction of system anomalies.
Accenture Eyes 5G Cloud Network Transformation
The buyout is expected to strengthen Accenture’s position as a key partner for design, engineering, roll-out and operation of voice, data, video, fixed, mobile, 5G and IoT services for clients especially in the industrial, energy, telecommunications and infrastructure industries.
The integration of Arca’s capabilities with Accenture’s SynOps platform is expected to enhance Accenture’s ability to enhance operating models for its clients.
So far this year, shares of Accenture have gained 16.9%, ahead of 13.9% growth of the industry it belongs to, and 10.7% rally of the Zacks S&P 500 composite.
Zacks Rank and Stocks to Consider
Accenture currently carries a Zacks Rank #4 (Sell).
Some top-ranked stocks in the broader Zacks Business Services sector are Republic Services RSG, Gartner IT and Insperity NSP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
Long-term earnings (three to five years) growth rate for Republic Services, Gartner and Insperity is estimated at 9.4%, 13.5% and 15%, respectively.
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