Deal is latest in service company’s acquisition spree
Accenture is continuing an aggressive acquisition strategy with the purchase this week of Fairway Technologies, an 80-person company that delivers engineering services to customers. The move will bolster Accenture’s Product and Platform Engineering Services practice, which helps organizations manage and build software-based platforms.
The Lowdown: The deal is part of Accenture’s larger acquisition initiative this year, which is being fueled by an M&A war chest of more than $1. 5 billion aimed at building out its service capabilities in a range of areas, including cybersecurity, Internet of Things, 5G wireless, and cloud. No financial details of the Fairway acquisition were released.
The Details: The combination of Accenture’s engineering service unit and Fairway will enable customers to scale and improve their digital platforms, launch new business models, and build out new revenue streams. Fairway operates offices in California (San Diego and Irvine) and Austin, Texas. Accenture has more than 450,000 employees in more than 120 countries.
Background: Accenture has bought almost a dozen companies this year, with the most recent purchase being Parker Fitzgerald. That deal was designed to enhance the technology and business capabilities of the service company’s Finance and Risk unit.
The Buzz: “This acquisition will help Accenture continue to make next-generation platform technology a reality for our clients,” said Ram Ramalingam, managing director of Accenture’s Product and Platform Engineering Services practice. “We turn innovative ideas into business differentiation, building products and platforms that create the right level of engagement and personalization with customers and ecosystem partners to help organizations thrive in the digital era.”
“Joining Accenture will enable us to continue our strategy of delivering premium engineering services, now on a broader scale,” said Fairway Technologies CEO Brett Humphrey. “With digital platforms becoming a foundation for organizations to create new products and services, Accenture’s Product and Platform Engineering Services practice and Fairway Technologies will work together to help companies disrupt and build competitive advantage in the platform economy.”