Accenture ACN yesterday announced that it has completed the acquisition of Gekko, a France-based Amazon Web Services (AWS) cloud services company. The deal was initially announced on Apr 20. Financial terms of the deal have been kept under wraps.
Gekko has served more than 80 clients (including some of the leading companies in France) in designing and deployment of a connected and secure cloud infrastructure. It has more than 100 trained cloud professionals, 100 AWS certifications and a deep relationship with AWS.
So far this year, shares of Accenture have gained 15.6% compared with 11.2% rise of the industry it belongs to and 9% growth of the Zacks S&P 500 composite.
Buyout to Boost Accenture’s Cloud Capabilities
The acquisition is expected to enhance Accenture’s position as one of the leading providers of AWS expertise and cloud transformation in France. Gekko’s expertise in AWS should help Accenture in providing end-to-end cloud services such as strategy ideation, migration and managed services to its European clients.
The buyout boosts Accenture's position in cloud and artificial intelligence and expands its ongoing relationships with key technology providers, including ecosystem partners such as Amazon, Google and Microsoft. The deal also enhances the cloud migration expertise and objectives of Accenture AWS Business Group (AABG) in France, Luxembourg, Belgium and the Netherlands.
Considering the opportunities in the growing cloud industry, the deal seems to be a strategic move on Accenture’s part to strengthen its foothold in the industry.
Zacks Rank and Stocks to Consider
Accenture currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are DocuSign DOCU, SPS Commerce SPSC and SailPoint Technologies Holdings, Inc. SAIL. All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for DocuSign, SPS Commerce and SailPoint is 47%, 15% and 15%, respectively.
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Accenture PLC (ACN) : Free Stock Analysis Report
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