Accenture Announces Intent to Acquire AFD.TECH to Bolster its Cloud First Network Capabilities

Rhea-AI Summary

Accenture (NYSE: ACN) plans to acquire AFD.TECH, enhancing its network capabilities in next-generation technology, including 5G and fiber. The acquisition adds over 1,600 professionals, boosting Accenture’s expertise in network engineering and operations. This strategic move aligns with Accenture's Cloud First capabilities, enabling comprehensive transformations for clients. The deal follows other recent acquisitions and aims to strengthen Accenture's presence in Europe. Financial terms remain undisclosed, with customary conditions and consultations expected before closing.

Positive

• Acquisition adds 1,600 skilled professionals to Accenture.
• Enhances capabilities in network engineering and operations.
• Strengthens Accenture's footprint in advanced mobile and enterprise networks.
• Aligns with Cloud First capabilities, promoting comprehensive transformations.

Negative

• None.

Acquisition would enhance Accenture’s ability to drive comprehensive transformation across core network, edge and next generation networks including 5G and fiber

PARIS--(BUSINESS WIRE)-- Accenture (NYSE: ACN) has announced its intent to acquire AFD.TECH, an independent network services company specializing in network engineering, operations and business services. Financial terms of the transaction are not being disclosed.

Accenture to acquire AFD.TECH (Graphic: Business Wire)

This acquisition would add more than 1,600 highly skilled professionals to Accenture globally, along with multidisciplinary capabilities across engineering, design, deployment, and operation of next generation networks, such as 5G and fiber.

“The combination of latest technologies such as 5G, cloud and next generation IoT is transforming the way businesses are operating across all the industries by creating opportunities for innovative services and new sources of growth,” said Olivier Girard, market unit lead for Accenture in France & Benelux. “To succeed in their digital transformation and take advantage of its full potential, companies must act now to adopt the right strategy and build new business solutions enabled by network investments. This acquisition would give us a significant footprint in advanced mobile and enterprise networks.”

The newly acquired expertise when combined with Accenture’s Cloud First capabilities would provide a broad spectrum of proven practices, operational excellence and human ingenuity to help clients drive comprehensive transformation across their disparate networks.

Karthik Narain, global lead, Accenture Cloud First, said: “Most networks were not built for today’s highly distributed world of cloud, edge devices and remote work. Increasingly, companies will need to invest in modern networks that seamlessly connect across the dynamic capabilities of the cloud continuum—from public through edge and everything in between. AFD.TECH’s network operations and IT capabilities, as well as its deep industry knowledge, would complement Accenture’s cloud, edge computing, security, and network capabilities to help clients shape, build and operate cloud-first networks.”

Founded in 1998, AFD.TECH serves leading telecom brands and clients across various other industries, including energy, industrial, infrastructure and life sciences sectors. The company is based in France with additional offices in Belgium and Morocco.

“Combining our strengths with Accenture would allow us to leverage the potential offered by the latest technologies and to allow an even-broader client base, both existing and future, to grasp the full potential of the range of new services that will be generated by the deep transformation across nearly every industry and market in the next five years. The opportunity to join Accenture would allow us to scale capabilities and enable tremendous opportunity for our clients, our company and our people. Together, we would help clients adapt their operating model, expand the skills of their people and drive innovation to unlock the full potential of 5G.” said Jérôme Picard, co-founder and CEO of AFD.TECH.

The acquisition of AFD.TECH would strengthen Accenture’s network operations capabilities in Europe and follows Accenture’s acquisition of Arca last November and of umlaut in October 2021.

The acquisition requires prior consultation with the relevant works councils and would be subject to customary closing conditions.

About Accenture
Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services—all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 624,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities.
Visit us at www.accenture.com.

Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture and AFD.TECH will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for Accenture; the COVID-19 pandemic has impacted Accenture’s business and operations, and the extent to which it will continue to do so and its impact on the company’s future financial results are uncertain; Accenture’s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture does not successfully manage and develop its relationships with key alliance partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; Accenture might be unable to access additional capital on favorable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; as a result of Accenture’s geographically diverse operations and its growth strategy to continue to expand in its key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
Copyright © 2021 Accenture. All rights reserved. Accenture, and its logo are trademarks of Accenture.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211214005037/en/

Velislava Le Fevre

Accenture France

+33 1 53 23 46 18

velislava.lefevre@accenture.com



Bonnie OLIVIER

Accenture France

+33 1 53 23 54 61

bonnie.olivier@accenture.com

Source: Accenture

FAQ

What is Accenture's recent acquisition related to?

Accenture's recent acquisition of AFD.TECH enhances its network capabilities, focusing on next-generation technology including 5G and fiber.

How many professionals is Accenture acquiring from AFD.TECH?

Accenture is acquiring over 1,600 professionals from AFD.TECH.

What are the expected benefits of Accenture's acquisition of AFD.TECH?

The acquisition is expected to enhance Accenture's expertise in network engineering, operations, and support comprehensive transformations for clients.

When was the acquisition of AFD.TECH announced?

The acquisition of AFD.TECH was announced recently by Accenture.

What is the significance of the AFD.TECH acquisition for Accenture?

This acquisition significantly boosts Accenture's capabilities in advanced mobile and enterprise networks, strengthening its market position in Europe.