Accenture to Acquire Engineering Capabilities from DI Square to Strengthen PLM and ALM Capabilities for Manufacturing Clients
Accenture (NYSE: ACN) has announced an agreement to acquire DI Square, enhancing its capabilities in product lifecycle management (PLM) and application lifecycle management (ALM) systems integration. This strategic acquisition aims to bolster Accenture’s engineering expertise, particularly for automotive and manufacturing clients in Japan and beyond. DI Square brings valuable know-how and approximately 70 professionals to Accenture’s Industry X group, facilitating comprehensive digital transformation for clients in manufacturing. Financial terms of the transaction remain undisclosed.
- Acquisition will enhance Accenture's expertise in PLM and ALM, crucial for automotive clients.
- Strengthens Accenture Industry X group with 70 new professionals.
- Potential for improved productivity and competitiveness for clients via integrated engineering solutions.
- Financial terms of the acquisition are undisclosed, raising questions about cost implications.
- Integration challenges may arise with the addition of new personnel and systems.
Accenture (NYSE: ACN) has entered into an agreement with DI Square to acquire the company’s consulting capabilities for product lifecycle management (PLM) and application lifecycle management (ALM) systems integration. The acquisition will expand Accenture’s engineering expertise for automotive and other manufacturing clients in Japan and other markets. Terms of the transaction were not disclosed.
Accenture will acquire DI Square’s consulting capabilities for PLM and ALM systems integration — strengthening the engineering expertise of its Industry X group for automotive and other manufacturing clients. (Graphic: Business Wire)
Accenture will acquire DI Square’s PLM and ALM-related know-how and client contracts as well as take on approximately 70 DI Square professionals. They will join Accenture’s Industry X group in Japan, which helps clients digitize their core operations including the design, development, manufacturing and servicing of smart connected products.
DI Square’s capabilities will enable Accenture to build systems and solutions that can optimize and integrate clients’ engineering processes end-to-end, from conceptual design through to integration, operation and maintenance. The combination with Accenture’s artificial intelligence and Digital Twin expertise will help manufacturing clients become more productive and competitive. For example, many automotive companies are facing efficiency challenges in product development as intelligent vehicle functionality adds more and increasingly sophisticated software to cars, dramatically driving complexity in engineering.
“Manufacturing companies must digitize not just the enterprise but their entire operating value chains,” said Shinichiro Kohno, managing director and lead for Accenture Industry X in Japan. “The capabilities we will acquire from DI Square will expand our expertise for PLM and ALM, which are at the intersection of engineering and manufacturing. Manufacturers have a growing need for help in these areas and we want to be their partner of choice for a comprehensive digital transformation of core operations that applies the power of data and digital to support sustainability, productivity and growth.”
DI Square’s capabilities for PLM and ALM solutions and advanced engineering include 3D computer-aided design (CAD), computer-aided manufacturing (CAM), modular design and model-based systems engineering (MBSE). The company is a well-known implementation partner for PLM solutions from Dassault Systèmes, one of Accenture’s strategic alliance partners. Dassault Systèmes solutions are widely adopted among Japanese manufacturers including automotive companies, which set particularly strict QCD (quality, cost and delivery) standards.
Accenture and DI Square will also look to establish an ongoing alliance to streamline clients' acquisition of software licenses and hardware as part of implementing their PLM and ALM solutions.
The acquisition of DI Square’s PLM capabilities is the latest in a number of investments Accenture has made to strengthen its Industry X capabilities globally. Most recently, Accenture announced its agreement to acquire umlaut, an engineering and consulting services firm, headquartered in Germany. Other examples include operations technology provider Electro 80 (Australia), industrial robotics and automation service provider Pollux (Brazil), operations consultancy Myrtle (US) and technology consultancy SALT Solutions (Germany).
Completion of the acquisition is 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 537,000 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.
Accenture Industry X embeds intelligence in how clients run factories and plants, as well as design and engineer connected products and services—making manufacturing and operations more efficient, effective and safe; enabling companies to transform how they make things, and the things they make, for sustainable growth.
Forward-Looking Statements
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These risks include, without limitation, risks that: Accenture and DISquare 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; Accenture’s results of operations have been significantly adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic; 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 could face legal, reputational and financial risks if the company fails 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 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 ability to attract and retain business and employees may depend on its reputation in the marketplace; 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; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; 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 might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; 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; 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; 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. 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