January 31, 2017
Accenture to Acquire InvestTech Systems Consulting, Further Expanding its Asset-Management Consulting Capabilities
NEW YORK; Jan. 31, 2017 – Accenture (NYSE: ACN) has agreed to acquire InvestTech Systems Consulting, a market leader in investment technology systems-integration and consulting services that supports many of the world’s largest asset managers and investment service providers.
The acquisition will further expand Accenture’s capabilities to help global investment managers, institutional investors and asset servicers strengthen their competitiveness by staying in front of new and emerging digital innovations and technology paradigms. Terms of the transaction were not disclosed.
“Asset managers are under growing pressure to modernize their investment management and operational infrastructure to support growth, higher efficiency and profitability,” said Owen Jelf, a senior managing director at Accenture and head of the company’s Capital Markets practice. “By further expanding our systems integration and consulting capabilities in this area, we will be able to do much more to help our clients tap new digital innovations and provide access to new scale advantages that can ensure their competitiveness well into the future.”
InvestTech’s services include systems integration and technology consulting support for the entire front to back-office investment process. The company, which is headquartered in Los Angeles, has expertise in strategic architecture planning, operations transformation, enterprise data management, investment accounting, portfolio management, trading product evaluations and implementation of leading vendor-provided solutions.
Jeremy Hurwitz, InvestTech’s founder and president, said, “Over the past twenty-five years, we’ve built a team of some of the world’s most experienced investment systems professionals and have served many of the largest and most complex global asset management firms. We have developed a powerful suite of proprietary tools and methodologies that enhance our investment process, architecture, data and technology delivery services to our clients. As part of Accenture, we will be able to bring world class services to a wider spectrum of clients — from large and mid-sized asset managers to insurance companies, pension plans and hedge funds.”
Accenture’s Capital Markets practice provides consulting, strategy, digital, technology and outsourcing services to help financial institutions drive sales-force effectiveness, transform the client experience, improve operational productivity and efficiency, and improve decision-making via Big Data and analytics. Its asset management practice leverages deep domain expertise to deliver end-to-end solutions for clients, which include seven of the top 10 global asset managers.
The InvestTech acquisition will be Accenture’s second industry-focused asset-management acquisition in a little over a year. In December 2015, Accenture acquired Beacon Consulting Group to enhance its management consulting capabilities and expand its back- and middle-office client relationships with five of the top 10 North American asset-management firms.
The InvestTech transaction, which is subject to customary closing conditions, is expected to close within the next several weeks.
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 394,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at 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. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. 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 InvestTech Systems Consulting 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 certain closing conditions; the transaction might not achieve the anticipated benefits for Accenture; Accenture’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the changing technological environment could materially affect the company’s results of operations; if Accenture is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the markets in which Accenture competes are highly competitive, and Accenture might not be able to compete effectively; Accenture could have liability or Accenture’s reputation could be damaged if the company fails to protect client and/or company data from security breaches or cyberattacks; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; Accenture might not be successful at identifying, acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; as a result of Accenture’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; adverse changes to Accenture’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; Accenture’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; if Accenture is unable to protect its intellectual property rights from unauthorized use or infringement by third parties, its business could be adversely affected; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; any changes to the estimates and assumptions that Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; many of Accenture’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news 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.
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Sean K. Conway
+ 1 917 592 5744