January 27, 2015
Accenture Closes Structure Acquisition, Strengthening Capabilities in Smart Grid Operations and Energy Trading and Risk Management Services
HOUSTON, Jan. 27, 2015 – Accenture (NYSE: ACN) has completed the acquisition of Structure, a provider of consulting, system integration and customized solutions and services to energy and utilities clients. The transaction expands and enhances Accenture’s deep experience and capabilities in smart grid solutions, especially grid operations, as well as commodity trading and risk management (CTRM).
“Our ability to provide comprehensive end-to-end solutions and services in the grid operations and commodities trading space to a wider variety of utilities and energy clients is significantly enhanced by this combination,” said Peggy Kostial, senior managing director for Accenture’s North America Resources operating group.
In the utilities industry, the combination adds Structure’s deep skills, including those in grid operations, with Accenture’s global strengths in information technology (IT) to support the integration of operational technologies (OT) with IT systems. Examples include the deployment of advanced distribution management systems and automation solutions, as well as improved outage management and grid analytics.
In commodities trading, the transaction strengthens Accenture’s business capabilities with utilities, mid-stream pipeline and energy companies. It brings Structure’s end-to-end expertise in market operations and commodities trading to help clients optimize their assets and commercial portfolios in natural gas, electric power, chemicals and crude oil.
As announced earlier this month, Structure’s approximately 200 employees will operate within Accenture’s Resources operating group.
"Over the last few weeks, the reaction from our people, clients, and industry partners has been overwhelmingly positive with many parties excited about the strategic synergies of our businesses,” said Lelon Winstead, Structure managing partner. "Today, we turn our attention towards realizing those strategic synergies by integrating our businesses to maximize the value for our clients and create growth opportunities for our people."
Founded in 1998, Structure has been consistently recognized in its field since 2010 with more than a dozen industry awards for growth, advisory services and solutions that make utilities and energy clients’ transformational strategies achievable.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 319,000 people serving clients in more than 120 countries. 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. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.
Structure is a leading provider of business advisory, system integration and customized solution development services focused exclusively on the energy and utilities industries. Structure relies on deep industry expertise and proven methodologies to deliver energy technology platforms for the next generation across Energy Trading and Risk Management, Smart Grid / Distribution Operations / Distribution Automation, SCADA and Energy Management Systems, and Competitive Energy Market Solutions. Its website is: www.thestructuregroup.com.
Forward Looking Statements
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: the transaction might not achieve the anticipated benefits for the company; the company’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; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company 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 the company competes are highly competitive, and the company might not be able to compete effectively; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and/or company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to ongoing changes in technology and offerings by new entrants; the company’s results of operations could materially suffer if the company is not able to obtain sufficient pricing to enable it to meet its profitability expectations; if the company does not accurately anticipate the cost, risk and complexity of performing its work or if the third parties upon whom it relies do not meet their commitments, then the company’s contracts could have delivery inefficiencies and be less profitable than expected or unprofitable; the company’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; the company’s business could be materially adversely affected if the company incurs legal liability; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment; the company might not be successful at identifying, acquiring or integrating businesses or entering into joint ventures; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; changes in the company’s level of taxes, as well as audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; adverse changes to the company’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; the company’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 the company is unable to protect its intellectual property rights from unauthorized use or infringement by third parties, its business could be adversely affected; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; many of the company’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; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; the company’s share price and results of operations could fluctuate and be difficult to predict; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; any changes to the estimates and assumptions that the company makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; the company 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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