Accenture to Acquire Capgemini’s North American Health Practice
NEW YORK; April 20, 2005 – Accenture has agreed to acquire Capgemini’s North American health practice, expanding the range of capabilities Accenture offers to the full spectrum of public- and private-sector health and life sciences organizations.
The acquisition will combine Accenture’s market-leading capabilities in working with health plans, life sciences companies and government organizations with Capgemini’s strength in serving hospitals and health systems. Accenture will pay the purchase price of $175 million in cash. Other terms of the agreement were not disclosed.
Following the acquisition, approximately 600 Capgemini professionals, including approximately 70 clinicians, will join Accenture’s Health & Life Sciences practice in North America, bringing the total number of Accenture professionals serving health and life sciences clients in the region to more than 4,600.
Accenture’s clients in the private and public health sectors include integrated healthcare providers, health insurers, managed care organizations, public health organizations and pharmaceutical, biotechnology and medical products companies, including 22 of the 30 healthcare and related companies in the Fortune Global 500. Accenture’s services to health and related entities in the public and private sectors accounted for more than $800 million of Accenture’s net revenues in fiscal 2004.
“This agreement underscores our commitment to helping our clients improve the quality, affordability and accessibility of healthcare,” said Thomas K. Spann, managing partner of Accenture’s Health & Life Sciences practice in North America. “Through this winning combination of industry leaders, Accenture will be even better positioned to serve the rapidly growing health market. We welcome Capgemini’s team of talented industry experts, as we clearly share a culture focused on delivering value for each client and making a positive difference for healthcare in North America.”
“Joining Accenture is a superb fit for us,” said Lewis Redd, president of Capgemini’s Health Consulting practice in North America. “Together we will be able to offer healthcare clients unparalleled industry knowledge and resources.” Mr. Redd is expected to join Accenture following the completion of the acquisition.
“This arrangement is consistent with Accenture’s strategy of acquisitions that fill out our capabilities in key industries and service areas,” said R. Timothy Breene, Accenture’s chief strategy officer and group chief executive--Business Consulting. “It demonstrates our commitment to bringing the strongest industry expertise, as well as technology capabilities and process skills, to serve clients in each area of our business.”
The acquisition is subject to regulatory and other customary approvals and is expected to close within the next 60 to 90 days. Accenture will be acquiring Capgemini’s North American health practice from Capgemini U.S. LLC and Capgemini Canada Inc.
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 110,000 people in 48 countries, the company generated net revenues of US$13.67 billion for the fiscal year ended Aug. 31, 2004. Its home page is www.accenture.com.
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