Accenture (NYSE:ACN), the bigwig of management consulting, technology and outsourcing services, with more than 293,000 employees; offices stationed in more than 200 cities in 56 countries is on a high note in acquisitions to leverage its net position in the global market and rivet its position as the global service sector leader. Of late, Accenture is out on an acquisition spree and is bagging all what is coming its way from company to app.
After its marathon acquisition of ClientHouse to boost its sales force capabilities in Europe, acquisition of businesses from Evopro Group strengthening its industrial and embedded software capabilities, acquiring i4C Analytics to expand its reach in the advanced analytics segment, empowering its enterprise performance management capabilities with the acquisition of PureApps and the latest completion of acquisition process of Enkitec extending ability to help clients optimize Oracle-based data center solutions, Accenture has now its eye set on the next big bagging-in deal of Hytracc Consulting, bolstering Its hydrocarbon and revenue accounting services to oil and gas companies.
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Let us take a closer look at the much-hyped future acquisition of Hytracc Consulting and its criticalities in a detailed way and how it’s going to affect the global position of Accenture.
Hytracc Consulting is a company specializing in the oil and gas domain. Hytracc specializes in consultancy service in terms of designing and execution of hydrocarbon production data management and accounting solution support to oil and gas companies and assists them in adding greater value by effective tracking of their production cycle. The effective tracking starts at the oil wells and the process guides through the whole system of production until they reach the sales counter and moves on to the customer’s basket in lieu of a commercial transaction. With its headquarters stationed in Stavanger, Norway, Hytracc operates in six countries.
To quote Henning Stokke, founder and director of Hytracc, commented about the ongoing process of Accenture acquiring Hytracc: “Accenture and Hytracc are joining forces to create scalable systems integration capabilities to better serve the hydrocarbon and revenue accounting needs of our oil and gas clients worldwide. Hytracc was founded with the aim of changing the way the upstream industry manages the hydrocarbon supply chain. This work will continue with even greater force as part of Accenture. Both companies have proven track records, industry depth and technology expertise, which also will make the combination a good fit. ”
What is in it for me (Accenture)???
Through this acquisition deal, Accenture will add another feather to its already diversified service cap. This deal will expand the services realm of Accenture into upstream production management solutions and services portfolio.
Though the terms of transaction are not yet disclosed and the acquisition deal is subject to regulatory compliance and other customary closing conditions, Accenture’s high technical and production management expertise coupled with Hytracc’s time proven track record of specialist skills in the hydrocarbon segment is bound to paint a new picture in the oil and gas industry. The joining of the two forces will offer a powerful combo solution service to the oil and gas sector in increasing discipline, vigil, optimization of output and accountability in hydrocarbon accounting solution deployment. This will not only improve the balance sheet of the oil and gas companies but also add to the profit books of Accenture. Mr. Andrew Smart, energy industry managing director for Accenture, said, “This transaction will further enhance our commitment to becoming the provider of choice for upstream production management services.”
This new move will leverage the position of Accenture in the upstream production management solutions and will embolden its presence as a solution service provider to the hydrocarbon segment of industry. Hytracc being one of the primary and leading solution service providers to the oil and gas sector and Accenture being the global leader in management solution service sector- both of them joining hands would certainly boost the market share of Accenture as a management solution service provider in the global market.
Accenture reported an increase of 1% in net revenue in U.S. dollars and 3% in local currency in the second quarter of the fiscal year standing at $7.13 billion in comparison with the second quarter of the previous fiscal year when it was $7.06 billion. With the addition of this new deal in its kitty; the Accenture management is optimistic about achieving targeted net revenue in the range of $7.40 billion-$7.65 billion for the third quarter of this fiscal. This range assumes a foreign-exchange impact of 0% for this third quarter when compared with the similar quarter of last year. Hence going by the trends, the market reviews and the management outlook of Accenture, it is definite that Accenture is riding high on the lined up acquisition deal and counting it as an extension of its elaborate solution-providing arsenal which is bound to make the financial statements look brighter and more promising for the investors worldwide.
As the synergies from this association would be worth talking on, all eyes are set for further details on the acquisition which is still in the pipeline. Both Hytracc and Accenture would benefit from this relationship, so let’s stay tuned and wait for the final move.