Accenture Completes Acquisition of Duck Creek Technologies
NEW YORK; Aug. 23, 2011 – Accenture (NYSE:ACN) has completed its acquisition of Duck Creek Technologies, a privately held company that specializes in software solutions for the property and casualty (P&C) insurance industry.
Approximately 370 Duck Creek employees based in the United States and the United Kingdom are joining Accenture through the acquisition. Duck Creek will become part of Accenture Software, Accenture’s dedicated software business.
The acquisition, announced on July 14, 2011, complements Accenture Software’s existing P&C, component-based software platforms. It will give Accenture an industry-leading suite of software with one of the most comprehensive suites of processing capabilities for the P&C insurance market — from product configuration and definition to policy management, including underwriting, billing, rating, ISO-based products support and claims management.
“This acquisition demonstrates our commitment to offering insurers a full suite of P&C software with independent but interoperable modules that cover all core insurance functions,” said Colin Davies, global director of Accenture Software. “The software is designed to address insurers’ business requirements while helping reduce implementation time and risk.”
“Clients will also benefit from continual access to Accenture’s ongoing R&D investments into advanced technologies, and can rely on our commitment to providing standard upgradable software, backed by valuable and cost-effective software maintenance services,” said John Del Santo, global managing director of Accenture’s Insurance practice. “We are pleased with our clients’ excitement and support for this acquisition. Like us, they see how these complementary capabilities can lead to better and faster software implementations and more efficient operations.”
Donald Light, senior analyst at Celent, a financial services industry research firm, commented, "Some insurers are looking for best of breed applications; others want a comprehensive end-to-end suite. All insurers are looking for effective software solutions that can be easily integrated and maintained. The .NET framework shared by Accenture Software and Duck Creek Technologies will facilitate integration and easier maintenance for a strong combined set of claims, policy administration, rating, and billing solutions."
Duck Creek Technologies was funded by FirstMark Capital, a venture capital firm specializing in innovative technology, and advised by Spurrier Capital Partners, a technology-focused M&A advisory firm. Both firms are based in New York City.
Accenture is a global management consulting, technology services and outsourcing company, with more than 223,000 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$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.
Accenture Software combines deep technology acumen with industry knowledge to develop differentiated software products. It offers innovative software-based solutions to enable organizations to meet their business goals and achieve high performance. Its home page is www.accenture.com/software.
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: the transaction might not achieve the anticipated benefits for the company; the company’s results of operations could be adversely affected by negative or uncertain economic or geopolitical conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; 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 changes in technology and client demand; the consulting and outsourcing markets are highly competitive and the company might not be able to compete effectively; work with government clients exposes the company to additional risks inherent in the government contracting environment, including risks related to governmental budget and debt constraints; clients may not be satisfied with the company’s services; results of operations could be materially adversely affected if clients terminate their contracts with the company; outsourcing services are a significant part of the company’s business and subject the company to additional operational and financial risk; results of operations could materially suffer if the company is not able to obtain favorable pricing; if the company is unable to keep its supply of skills and resources in balance with client demand around the world, 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 company’s business could be materially adversely affected if it incurs legal liability in connection with providing its services and solutions; if the company’s pricing estimates do not accurately anticipate the cost and complexity of performing work, then the company’s contracts could be unprofitable; many of the company’s contracts include performance payments that link some of the company’s fees to the attainment of performance or business targets and this could increase the variability of the company’s revenues and margins; the company’s ability to attract and retain business may depend on its reputation in the marketplace; the company’s alliance relationships may not be successful or may change, which could adversely affect the company’s results of operations; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; 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; revenues, revenue growth and earnings in U.S. dollars may be lower if the U.S. dollar strengthens against other currencies, particularly the Euro and British pound; the company could have liability or the company’s reputation could be damaged if the company fails to protect client data and company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company could be subject to liabilities or damage to its relationships with clients if subcontractors or the third parties with whom the company partners cannot meet their commitments on time or at all; 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; the company has only a limited ability to protect its intellectual property rights, which are important to the company’s success; changes in the company’s level of taxes, and audits, investigations and tax proceedings, could have a material adverse effect on the company’s results of operations and financial condition; the company’s profitability could suffer if its cost-management strategies are unsuccessful; 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; the company may be subject to criticism, negative publicity and legislative or regulatory action related to its incorporation in Ireland; 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 may not be successful at identifying, acquiring or integrating other businesses; consolidation in the industries the company serves could adversely affect its business; the company’s share price could fluctuate and be difficult to predict; 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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