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Accenture plc ACN yesterday announced that it has inked a deal to acquire Myrtle Consulting Group, an industrial operations consulting firm. The deal closure is subject to customary closing conditions. Financial terms of the deal have been kept under wraps.
Headquartered in Houston, TX, Myrtle specializes in optimizing clients’ production, supply-chain operations, sourcing and execution. The company is also equipped with change management methodology, organization design and implementation, leadership development, and frontline coaching services.
Edwin Bosso, CEO and founder of Myrtle, will be joining Accenture as managing director. Employees of Myrtle will join Accenture Industry X.
Over the past six months, shares of Accenture have gained 28.3% compared with 26.6% rise of the industry it belongs to and 24.1% growth of the Zacks S&P 500 composite.
How Will Accenture Benefit?
The buyout will help Accenture boost its manufacturing and supply-chain capabilities. It is likely to enhance Accenture’s potential to transform these areas for clients from initial value assessments and operating model strategies to new business processes and technology solutions.
Myrtle’s operational expertise, in combination with Accenture’s international presence and digital capabilities, is expected to help clients transform their operations.
Notably, Nigel Stacey, global lead at Accenture Industry X, stated, “Cost, quality and safety remain a constant and rising challenge for manufacturing and operations leaders. They need to free untapped value across production sites and distribution centers, so they can invest in resilient and responsible operating models for manufacturing and supply chains that are future-proof and digital-enabled. This is what the combined skills of Accenture and Myrtle will help them achieve.”
Accenture’s prior initiatives in strengthening its digital manufacturing, operations and supply-chain capabilities, along with expanding its global presence, included the acquisitions of SALT Solutions in Germany, PLM Systems in Italy and Callisto Integration in Canada in 2020, and Silveo in France and Enterprise System Partners in Ireland in 2019.
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 Republic Services RSG, CoreLogic CLGX and TransUnion TRU, 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 Republic Services, CoreLogic and TransUnion is 7.9%, 12% and 14%, respectively.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.