Accenture to Acquire AddVal Technology Inc., Enhancing Freight-Management Capabilities
NEW YORK; May 7, 2008 — Accenture (NYSE: ACN) has entered into an agreement to acquire the business of AddVal Technology Inc. (AddVal), a privately owned provider of end-to-end shipment-management products and services to global freight-management and airline-cargo companies. Based in Cupertino, Calif., AddVal has a software development center in Chennai, India.
The acquisition would provide Accenture with AddVal’s industry-leading technology platform for freight order management and strengthen Accenture’s Freight and Logistics practice, which provides a wide variety of services to the global freight-management industry.
Specifically, the acquisition would enhance Accenture’s ability to help clients modernize their freight management services and accelerate integration of the freight management systems with key finance, business intelligence and other management systems. As part of the acquisition, AddVal employees are expected to transition to Accenture.
“This acquisition is a strategic fit for both Accenture and AddVal and reflects our commitment to help our clients in the freight and logistics industry become high-performance businesses,” said Paul Tournier, managing director of Accenture’s Freight & Logistics practice. “The combination of Accenture’s services and solutions and the unique technology platform AddVal has developed will help companies in the broader freight management services industry achieve operational efficiency and truly global integration faster and more effectively than ever before.”
Adriana Diener, AddVal’s chief executive officer, said, “Joining forces with Accenture will help us extend and deliver our tools and capabilities to a broader market and enable us to offer clients a full complement of consulting and technology services, industry knowledge and expertise to help bring the industry to the next level.”
The acquisition is subject to the satisfaction of customary closing conditions and is expected to close within 45 days. Terms of the agreement are not being disclosed.
Accenture is a global management consulting, technology services and outsourcing company. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. With 178,000 people in 49 countries, the company generated net revenues of US$19.70 billion for the fiscal year ended Aug. 31, 2007. Its home page is www.accenture.com.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: Accenture and Addval will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to receive requisite regulatory approvals and satisfy the closing conditions; the transaction might not achieve the anticipated benefits for Accenture; Accenture’s results of operations could be negatively affected if Accenture cannot expand and develop its services and solutions in response to changes in technology and client demand; the consulting, systems integration and technology and outsourcing markets are highly competitive and we might not be able to compete effectively; Accenture’s results of operations could be affected by economic and political conditions and the effects of these conditions on our clients’ businesses and levels of business activity; Accenture’s work with government clients exposes us to additional risks in the government contracting environment; clients may not be satisfied with our services; Accenture’s business could be negatively affected by legal liability that results from our providing solutions or services; liabilities could arise if Accenture’s subcontractors or other third parties cannot deliver their project contributions on time or at all; Accenture’s results of operations could be adversely affected if clients terminate their contracts with Accenture on short notice; Accenture’s outsourcing services subject it to operational and financial risk; Accenture’s results of operations may be adversely affected by the type and level of technology spending by clients; Accenture’s profitability may suffer if Accenture is not able to maintain favorable pricing rates and utilization rates, if Accenture cannot control costs, or if Accenture cannot anticipate the cost and complexity of performing Accenture’s work; Accenture’s global operations are subject to complex risks, some of which might be beyond Accenture’s control; Accenture’s growth and ability to compete may be adversely affected if Accenture cannot attract, retain and motivate employees or efficiently utilize their skills, including those personnel currently employed by Addval; Accenture’s business may be adversely affected if it cannot manage the organizational challenges associated with the size and expansion of Accenture; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in our most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this press release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.