Accenture (NYSE:ACN), a leading information technology (IT) and consulting services provider, plans to acquire Fibermind, an Italy-based network services company. Fibermind specializes in fiber and mobile 5G network deployment and infrastructure engineering services. The move will strengthen Accenture’s offerings across various industries, including telecommunications, transportation, and utilities.
As part of the deal, Fibermind will add over 400 highly qualified professionals to Accenture’s operations. However, Accenture did not disclose the financial terms of the deal.
ACN’s Emphasis on Acquisitions
For Accenture, mergers and acquisitions (M&A) play a crucial role in its growth strategy. These investments enable Accenture to diversify its service portfolio, expand its digital expertise, and enter high-growth markets. Each acquisition enhances Accenture’s competitive positioning by adding skills and capabilities in new areas.
Over the past four years, Accenture has executed more than 140 acquisitions. In Fiscal 2023 alone, Accenture completed 25 acquisitions amounting to approximately $2.5 billion. This notable M&A activity shows Accenture’s commitment to enhance its competitive positioning and accelerate growth.
The company has announced multiple deals so far in 2024 and recently completed the acquisition of Soko, an independent Brazilian creative agency. Earlier this month, it acquired Parsionate, a data consultancy firm.
ACN Will Release Q3 Earnings Today
Accenture will release its Q3 earnings results today, before the market opens. Wall Street expects Accenture to post earnings of $3.16 per share on revenue of $16.539 billion.
The consensus estimate suggests a decline of about 1% in Q3 EPS on a year-over-year basis.
Is Accenture a Good Stock to Buy Now?
Accenture stock is down about 18% year-to-date. Further, Wall Street is cautiously optimistic about Accenture stock ahead of Q3 earnings.
It has nine Buys and eight Hold recommendations for a Moderate Buy consensus rating. The analysts’ average ACN stock price target is $348.24, implying 22.04% upside potential from current levels.
