Management technology outsourcing and consulting service provider Accenture plc (ACN) recently completed the acquisition of Neo Metrics Analytics, a reputed Spanish consultant for optimization and predictive analytics. Financial terms of the buyout, which was planned in January, remained undisclosed.
Neo Metrics’ offerings facilitate interaction between companies and their customers, generating specific data to model future demand. This information is extremely useful, since it helps firms to improve business processes and prospects.
Accenture already has a broad-based analytics portfolio which we think will be augmented with Neo Metrics’ intellectual capabilities and assets. Accenture’s analytics-based offerings for fraud management, quality management, pricing optimization and demand forecasting are expected to benefit the most. The improved analytical services will facilitate rapid analysis and customer behavior prediction, driving the decision making capability and profitability of firms.
Accenture’s Neo Metrics acquisition underscores its expansion plan in Spain. Neo Metrics’ capabilities will complement Accenture’s Analytics Innovation Center in Barcelona that became operational in April 2011. Accenture sees an increasing demand for analytics in this region and is on the right track to penetrate the market.
A more comprehensive solution could help Accenture generate a wide array of analytics deals in Spain. Depending on the timing of these deals, they could help Accenture’s revenue goals for the year.
We are encouraged by Accenture’s second quarter results and hope to see improving results on the back of continued deal wins. Accenture’s Asian expansion could also have a positive outcome. But heightening competition from IBM Corp. (IBM) and Hewlett-Packard’s (HPQ) Enterprise Services unit, a strained spending environment and its broad European exposure may act as headwinds.
Currently, Accenture has a short-term Buy recommendation, denoted by the Zacks #2 Rank.


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