Accenture plc ACN yesterday announced that it has completed the acquisition of Revolutionary Security, a privately-held company specialized in enterprise cybersecurity for information technology (IT) and operational technology (OT) environments. Financial terms of the deal have been kept under wraps.
Founded in 2016, Revolutionary Security serves many clients in the energy, manufacturing, healthcare, financial services and communications industries. Its portfolio of cybersecurity services includes assessment and testing, design and building of security programs, and functions and security operations across its clients’ IT and OT systems. Headquartered in the greater Philadelphia area, the company has 90 highly skilled cybersecurity professionals throughout the United States.
Acquisition to Enhance Accenture Security Services
The buyout boosts Accenture Security’s critical infrastructure protection potential to provide advanced cyber defense management. The addition of Revolutionary Security’s service offerings enhances Accenture’s portfolio and helps it better serve clients with greater end-to-end solutions, especially related to critical IT and OT cybersecurity challenges.
Given the increasing rate of high-profile and targeted cyberattacks across the globe, critical IT and OT cybersecurity have become one of the major business criteria every company is focusing on. The deal, thus, seems to be a strategic move on Accenture’s part to strengthen its foothold in the cybersecurity business.
Kelly Bissell, who leads Accenture Security globally, stated, "The acquisition of Revolutionary Security is another demonstration of our continued commitment to invest in areas to keep our clients safe from cyber threats."
Jim Guinn II, who leads Accenture’s cybersecurity business for the energy, utilities, chemical and mining industries, stated, "Companies often lack the necessary visibility to manage and measure OT cyber risk in the same way as IT risk. Revolutionary Security’s extensive experience working with industrial companies and their specialized technical skillset will be incredibly valuable to our clients."
Accenture Security’s prior initiatives of investing in the latest technologies to enhance its cybersecurity solutions include the buyout of Symantec’s Cyber Security Services business from Broadcom along with the acquisitions of Context Information Security, Deja vu Security, iDefense, Maglan, Redcore, Arismore and FusionX.
Zacks Rank & Stocks to Consider
Currently, Accenture carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Business Services sector are CoreLogic CLGX, Booz Allen Hamilton BAH and Charles River Associates CRAI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term expected EPS (three to five years) growth rate for CoreLogic, Booz Allen Hamilton and Charles River Associates is 11%, 11.9% and 13%, respectively.
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