February 13, 2024
Accenture to Strengthen Sourcing and Procurement Services With Acquisition of Insight Sourcing
NEW YORK and ATLANTA; Feb. 13, 2024 – Accenture (NYSE: ACN) has entered into an agreement to acquire Insight Sourcing, a provider of strategic sourcing and procurement services. Insight Sourcing will broaden Accenture’s sourcing and procurement services for private equity companies and the consumer goods, retail, technology and industrial industries.
Insight Sourcing helps its clients optimize costs when sourcing and negotiating contracts for direct materials (e.g., metals, electronics, food ingredients, chemicals, clinical services), indirect materials (e.g., logistics, packaging, IT, marketing), services related to capital expenditures (e.g., construction, facility equipment) and energy procurement management.
The firm will strengthen Accenture with proven expertise in cost takeout strategy powered by category and supplier market intelligence. Insight Sourcing will add approximately 220 sourcing consultants to Accenture’s Sourcing & Procurement practice within its Supply Chain & Operations function. The acquisition will include Insight Sourcing’s bespoke suite of more than 40 technology procurement tools to help clients capture value faster.
Rob Fuhrmann, global lead for sourcing and procurement at Accenture, said: “Accenture and Insight Sourcing will combine expertise across direct, indirect and capital expense cost reduction with complementary data and technology capabilities to drive efficiency and resilience across our clients’ supply chains. With Insight Sourcing, we are taking another important step to position Accenture as a leading provider in sourcing and procurement advisory and execution services for corporate and private equity clients.”
With Insight Sourcing, Accenture will continue expanding its capabilities for private equity clients. Insight Sourcing currently serves more than 60 companies in this industry, including 10 of the 25 largest funds in North America. Accenture recently acquired two additional sourcing and procurement services providers that support private equity companies, New York-based advisory firm Impendi in January and consultancy The Shelby Group last November.
“Insight Sourcing will be the latest investment we are making to address growing demands from private equity investors, who seek tailored and repeatable solutions that drive value,” said Muqsit Ashraf, global lead for Accenture Strategy. “Combined with Accenture’s proven expertise across strategy, advisory, technology and managed services, Insight Sourcing will provide critical spend and sourcing capabilities to our private equity clients and their portfolio companies.”
Tom Beaty, founder and CEO of Insight Sourcing, said: “Joining Accenture will accelerate our mission of bringing procurement excellence to our clients. Over two decades, we have built a skilled team of professionals who are passionate about being the best in their craft and driving impactful results. As part of Accenture’s sourcing and procurement strategy, we will reach new levels of continued success with increased resources and opportunities.”
Insight Sourcing is headquartered in Atlanta and was founded in 2002. The acquisition will include Insight Sourcing’s energy procurement and management business, Insight Energy.
Terms of the transaction were not disclosed. Completion of the acquisition is subject to customary closing conditions, including receipt of regulatory approvals.
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,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture and Insight Sourcing 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 have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political 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 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 evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to match people and their skills 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; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture does not successfully manage and develop its relationships with key ecosystem partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; 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 or fail to satisfy certain agreed-upon targets or specific service levels; 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; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; as a result of Accenture’s geographically diverse operations and strategy to continue to grow in key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; 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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