BrightTower Advises Procurement Spend Management Firm ClearEdge Partners in Sale to Accenture

Rhea-AI Summary

On November 9, 2021, Accenture (NYSE: ACN) announced the acquisition of ClearEdge Partners, a procurement spend management firm. This strategic move aims to enhance Accenture's capabilities in managing IT spending amidst rising digital transformation costs, projected to reach $4.1 trillion in 2021. With ClearEdge's expertise, Accenture seeks to counteract the estimated 30% of IT spend value lost to inefficiencies. The acquisition will integrate with Accenture's SynOps platform, expected to generate significant cost savings and value for clients.

Positive

• Acquisition of ClearEdge Partners enhances Accenture's procurement capabilities.
• Integration with SynOps platform aims to improve spend management and reduce licensing complexities.
• Potential to generate cost savings and value from increased IT spending amid digital transformation.

Negative

• None.

NEW YORK, Nov. 9, 2021 /PRNewswire/ -- Accenture (NYSE: ACN) has acquired ClearEdge Partners, Inc., a firm specializing in procurement spend management, to help clients accelerate technology-led business by better managing digital transformation spend. Terms of the transaction were not disclosed.

BrightTower, a premier investment banking and M&A advisory services firm, served as the exclusive financial advisor to ClearEdge Partners in this transaction.

ClearEdge Partners brings proprietary methodologies, deep expertise and solutions for information technology (IT) spend management and software asset management. These capabilities with Accenture's SynOps platform will give Accenture the ability to extend insights and purchasing expertise to strengthen spend management and improve ways of working, ultimately generating cost savings and top-line value for clients.

Expanding digital transformation agendas continues to drive rising IT spending among enterprise organizations. Industry forecasts by Gartner® projects worldwide IT spending to reach $4.1 trillion by the end of 2021, up 8.4% from 2020¹. However, Accenture estimates, as much as 30% of value from IT spending gets lost to licensing complexities and lack of spending controls.

"While the pandemic accelerated the speed of digital adoption, organizations are now at an inflection point where sustaining growth will be defined by those that create value faster and maximize the impact of those investments," said Manish Sharma, group chief executive of Accenture Operations. "We're delighted to welcome ClearEdge Partners to our team, adding significant IT category expertise to our procurement business while extending our ability to help deliver breakthrough value for our clients."

Headquartered in the Boston area, ClearEdge Partners brings approximately 100 professionals to Accenture Operations, along with deep category expertise, advanced analytics and software asset management, providing category strategy, sourcing support and IT spend management.

Jack Garrahan, co-founder and chief executive offer of ClearEdge Partners, added: "Since starting ClearEdge Partners 15 years ago, we've built unrivaled expertise and capabilities for helping clients maximize the value of their digital transformation spend. Together with Accenture, our shared vision of the future and combined capabilities will accelerate our ambition and enable us to have an even bigger impact."

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. 

About BrightTower
BrightTower is a premier investment banking and M&A advisory services firm specializing in software, tech-enabled marketing, business/IT services, and information. Primarily focused on accelerating the growth of tech-enabled, data-driven and subscription companies, BrightTower is helping support clients as they stay ahead of quickly evolving markets. Visit us on LinkedIn.

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¹ Gartner Press Release, Gartner Forecasts Worldwide IT Spending to Reach $4 Trillion in 2021, April 7, 2021  GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

 

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SOURCE BrightTower

FAQ

What is the significance of Accenture's acquisition of ClearEdge Partners?

The acquisition aims to enhance Accenture's procurement spend management capabilities and improve efficiency in IT spending.

How much is worldwide IT spending projected for 2021 according to the press release?

Worldwide IT spending is projected to reach $4.1 trillion by the end of 2021.

How does ClearEdge Partners contribute to Accenture's business?

ClearEdge Partners brings expertise in IT spend management, which will integrate with Accenture's existing SynOps platform.

What percentage of IT spend value is lost due to inefficiencies, according to Accenture?

Accenture estimates that approximately 30% of IT spend value is lost due to licensing complexities and lack of controls.