Accenture (ACN) to Benefit From Sentor Buyout: Here's How
Accenture plc ACN announced that it has completed the purchase of Sentor, a Sweden-based provider of cyber defense and managed security services. Financial terms of the deal have been kept under wraps.
Founded in 1998, Sentor’s portfolio includes advisory services, security testing, managed detection and incident-response capabilities powered by a 24/7/365 security operations center in Stockholm. It serves in industries like finance, insurance, manufacturing, retail and others. The company is headquartered in Stockholm and has additional offices in Gavle and Malmo.
So far this year, shares of Accenture have gained 12.8% compared with 14.8% rise of the industry it belongs to and 14.8% growth of the Zacks S&P 500 composite.
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How Will Accenture Benefit?
The buyout marks the integration of Sentor’s almost 80 cybersecurity professionals into Accenture’s Security team in Sweden. This is expected to expand Accenture’s cyber defense and managed security services in the country.
Considering the increasing demand for cybersecurity and managed security services, the deal seems to be a strategic move on Accenture’s part to strengthen its competitive position in the cybersecurity business of the Swedish market.
Notably, Bala Periasamy, Accenture Security lead, Sweden, stated, "Sentor has a very strong reputation in the cybersecurity community in Sweden through its long-lasting experience in delivering advanced cybersecurity services to the Swedish market." He further added, "They have managed to attract exceptional talent and grow a technical security culture that is unique in the industry. We are very excited to welcome this highly talented group of professionals that will strengthen our ability to provide world-class cybersecurity to our clients."
Zacks Rank and Stocks to Consider
Accenture currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector include Interpublic IPG, Gartner IT and Charles River CRAI, each carrying a Zacks Rank #2 (Buy).
Long-term (three to five years) expected earnings per share growth rate for Interpublic, Gartner and Charles River is projected at 10.2%, 13.5% and 15.5%, respectively.
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Accenture PLC (ACN) : Free Stock Analysis Report
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