Accenture to Acquire Industrial AI Company Flutura

Rhea-AI Summary

Accenture (NYSE: ACN) has announced its acquisition of Flutura, an industrial AI company based in Bangalore, India. This strategic move aims to enhance Accenture's industrial AI services, improving plant, refinery, and supply chain performance while helping clients meet net zero goals. Flutura's approximately 110 professionals specialize in industrial data science, offering advanced analytics solutions to optimize asset performance and energy efficiency. The integration of Flutura's AI platform is expected to benefit various sectors, including energy, chemicals, metals, and pharmaceuticals. Financial terms of the deal remain undisclosed.

Positive

• Acquisition of Flutura strengthens Accenture's industrial AI capabilities.
• Flutura's expertise will enhance efficiency in energy, chemicals, metals, mining, and pharmaceuticals sectors.
• The deal supports Accenture's commitment to assisting clients in achieving net zero targets.

Negative

• Financial terms of the acquisition are undisclosed, causing uncertainty regarding its impact on Accenture's finances.

BANGALORE, India--(BUSINESS WIRE)-- Accenture (NYSE: ACN) has agreed to acquire industrial artificial intelligence (AI) company Flutura, headquartered in Bangalore, India. Flutura will strengthen Accenture’s industrial AI services to increase the performance of plants, refineries, and supply chains while also enabling clients to accomplish their net zero goals faster. Accenture plans to bring Flutura’s capabilities to clients in the energy, chemicals, metals, mining, and pharmaceutical industries. Terms of this deal were not disclosed.

Accenture has agreed to acquire industrial AI company Flutura. (Graphic: Business Wire)

Flutura’s approximately 110 professionals specialize in industrial data science services for manufacturers and other asset-intensive companies. Its AI platform provides self-service solutions for advanced analytics. The solutions help process, asset management and reliability engineering teams assess, predict, and improve the asset performance, reliability, throughput and energy efficiency outcomes of production and manufacturing facilities. Industrial engineers and data scientists can also quickly develop digital models of industrial assets on Flutura’s AI platform, which processes data from disparate IT and operations technology systems.

Senthil Ramani, senior managing director and Accenture Applied Intelligence lead for Growth Markets, said: “Flutura democratizes AI for engineers, enabling manufacturing and other asset-intensive companies with the carbon intelligence to reduce emissions, energy consumption and lost output due to unplanned downtime of industrial assets. This acquisition will power industrial AI-led transformation for our clients globally and particularly in Australia, South-East Asia, Japan, Africa, India, Latin America and the Middle East.”

Krishnan Raman, chief executive officer at Flutura, added: “Our AI platform enables engineers to respond with agility to everchanging market and operating conditions. We look forward to scaling this as part of Accenture and helping more industrial clients achieve high-value outcomes in their production operations.”

Companies need strong AI capabilities to build a digital core and become more successful, according to research Accenture presented at the 2023 World Economic Forum in Davos. Another Accenture study found that most companies are not very AI-mature and have barely scratched the surface of the technology’s potential.

With Flutura, Accenture continues to build its data and AI capabilities for clients. Last year, it acquired data science company ALBERT in Japan. Other recent AI acquisitions include Analytics8 in Australia; Sentelis in France; Bridgei2i and Byte Prophecy in India; Pragsis Bidoop in Spain; Mudano in the UK; and Clarity Insights, End-to-End Analytics and Core Compete in the US.

Completion of the acquisition is subject to customary closing conditions.

About Accenture
Accenture is a leading global professional services company that helps the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth, and enhance citizen services—creating tangible value at speed and scale. We are a talent and innovation led company with 738,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world’s leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology with unmatched industry experience, functional expertise and global delivery capability. We are uniquely able to deliver tangible outcomes because of our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Accenture Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients succeed and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our 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,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture and Flutura 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, 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 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 match people and their skills 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; Accenture’s environmental, social and governance (ESG) commitments and disclosures may expose it to reputational risks and legal liability; if Accenture does not successfully manage and develop its relationships with key ecosystem 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; as a result of Accenture’s geographically diverse operations and strategy to continue to grow in 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 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 © 2023 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230315005672/en/

Jens Derksen

Accenture

+49 175 5716393

jens.derksen@accenture.com

Liza Saha

Accenture India

+919871966466

liza.saha@accenture.com

Source: Accenture

FAQ

What is the purpose of Accenture's acquisition of Flutura?

The acquisition aims to enhance Accenture's industrial AI services, improving efficiency in various sectors and helping clients achieve net zero goals.

When was the acquisition of Flutura announced by Accenture?

The acquisition was announced on March 15, 2023.

How many professionals does Flutura employ?

Flutura employs approximately 110 professionals specializing in industrial data science.

What sectors will benefit from the Flutura acquisition?

The energy, chemicals, metals, mining, and pharmaceutical sectors will benefit from the acquisition.

What are the expected benefits of the Flutura acquisition for Accenture clients?

Clients are expected to see enhanced performance, improved asset management, and expedited achievement of net zero goals.