Accenture to Acquire Corliant, Expanding Enterprise Networking Services and Capabilities
NEW YORK; Oct. 4, 2007 -- Accenture (NYSE: ACN) has agreed to acquire Corliant, Inc., a privately held technology consulting firm that specializes in helping enterprises and communications service providers deploy and support advanced Internet Protocol (IP) networks. Terms of the agreement were not disclosed.
IP-based networks allow companies to provide voice, data, multimedia and other services over a single technology infrastructure, thereby reducing costs, increasing operational efficiency and enabling new revenue-generating services.
Corliant, a certified channel partner with Cisco Systems, has a large number of Cisco-certified employees with expertise in Cisco-based network technologies and solutions. As such, Corliant’s skills, methods, tools, design guides and training will complement Accenture’s existing network technology services and enhance Accenture’s capabilities and market presence in the network technology space.
“Corliant is an excellent strategic fit for Accenture,” said John Kaltenmark, head of Accenture Technology Consulting. “Their focus and expertise dovetail with our own capabilities, allowing us to become a one-stop-shop for specialized networking services, skills and solutions. Corliant’s talented professionals will enhance our ability to help our clients achieve high performance.”
Once the acquisition is completed, Corliant will become part of Accenture Technology Consulting. All of Corliant’s approximately 150 employees are expected to transition to Accenture.
“We look forward to the opportunity to combine Corliant’s networking and Cisco-specific expertise with Accenture’s broad client base, global footprint and ability to create and deliver innovative solutions to a wide range of enterprise and public-sector clients,” said Vish Tadimety, president and CEO of Corliant. “Working within the Accenture framework, we can use our methodologies in designing, integrating and building advanced IP network solutions to create value for clients.”
Organizations are increasingly seeking expertise in advanced IP network technologies. According to leading IT industry analyst firm IDC, the network consulting and integration market is projected to reach US$28.3 billion this year.[i]
“As the sophistication of IP networks continues to advance, the services provided by the network become a bigger and bigger enabler of applications,” said Don Rippert, chief technology officer, Accenture. “This acquisition not only enhances Accenture’s ability to implement next generation networks, but helps keep us on the forefront of next generation applications as well.”
The acquisition is subject to satisfaction of customary closing conditions and is expected to close within 60 days.
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 approximately 170,000 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.
Founded in 2000, Corliant provides world-class IP networking professional services to both enterprise and service-provider clients. Offering unique end-to-end services solutions based on industry-standard technologies, Corliant helps clients optimize their IP networks, sell secure IP services, and generate additional revenue. Headquartered in Philadelphia, Corliant serves its global customer base with locations in the United States, India, Japan and Singapore. Its home page is www.corliant.com. Pagemill Partners, LLC, advised Corliant, Inc. in this transaction.
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 Corliant will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy customary closing conditions; the transaction might not achieve the anticipated benefits for Accenture; our business could be negatively affected if we cannot expand and develop our services and solutions in response to changes in technology and client demand; the management consulting, systems integration and technology and outsourcing markets are highly competitive and we might not be able to compete effectively; our business could be negatively affected by economic and political conditions and the effects of these conditions on our clients’ business and levels of business activity; our work with government clients exposes us to additional risks in the government contracting process; clients may not be satisfied with our services; our business could be negatively affected by legal liability that results from our providing solutions or services; our results could be adversely affected if our clients terminate their contracts with us on short notice; our outsourcing services subject us to operational and financial risk; liabilities could arise if our subcontractors or other third parties cannot deliver their project contributions on time or at all; our results of operations may be adversely affected by the type and level of technology spending by our clients; our profitability may suffer if we are not able to maintain favorable pricing rates and utilization rates, if we cannot control our costs, or if we cannot anticipate the cost and complexity of performing our work; our global operations are subject to complex risks, some of which might be beyond our control; our growth and our ability to compete may be adversely affected if we cannot attract, retain and motivate our employees or efficiently utilize their skills, including those personnel currently employed by Corliant; our business may be adversely affected if we cannot manage the organizational challenges associated with the size and expansion of our company; 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.
Contact: Hannah Unkefer
[i] 2007 estimate includes network services spending by enterprise and carrier customers. Source: IDC, Worldwide and U.S. Enterprise Network Consulting and Integration Services 2007–2011 Forecast and Analysis, Doc #207569, July 2007.