ARLINGTON, Va.; February 9, 2015 – Accenture Federal Services (AFS) has agreed to acquire Agilex Technologies, Inc., (Agilex), a provider of digital solutions for the U.S. federal government. The acquisition will enhance Accenture’s digital capabilities in analytics, cloud and mobility for federal agencies. It also will add agile delivery expertise to further advance AFS’s ability to deliver rapid value to its clients. Terms of the transaction were not disclosed and the acquisition is subject to regulatory review and other customary closing conditions.
“Acquiring Agilex will help AFS further solidify our position as an innovative leader in the federal market. Combining our digital capabilities and agile methods will accelerate our ability to help clients harness the power of emerging digital technologies and rapid, predictable systems deployment for the federal government’s most complex challenges,” said David Moskovitz, Accenture Federal Services chief executive.
Agilex focuses exclusively on the unique mission and IT requirements of federal agencies and is recognized for its industrialization of agile development methodologies, its digital capabilities and its consistent delivery of rapid and measurable results. The company currently serves a number of federal departments and independent agencies, such as the Departments of Veterans Affairs, Homeland Security and Commerce. A privately-held company, Agilex was recently named a 2014 Greater Washington Government Contractor of the Year.
“We designed Agilex, from the start, to fundamentally change how government uses technology to execute its mission. By joining forces with AFS, Agilex can scale its capabilities more rapidly to have an even bigger impact across government,” said Agilex Vice Chairman and cofounder Jay Nussbaum. “AFS is respected for taking on the government’s most challenging missions and is valued in the federal sector for its ability to deliver client value, impact and results.”
“We see digital technologies fundamentally changing the way that government organizations operate and interact with citizens, patients, employees, suppliers, partners and other stakeholders,” said Mike Sutcliff, group chief executive, Accenture Digital. “By acquiring the unique agile development and digital capabilities of Agilex, AFS is enhancing its ability to help federal clients make the digital transformation journey and improve services and outcomes.”
Accenture Federal Services is a U.S. company, with offices in Arlington, Va., and is a wholly owned subsidiary of Accenture LLP. Accenture’s federal business has served every cabinet-level department and 30 of the largest federal organizations with clients at defense, intelligence, public safety, civilian and military health organizations.
Learn more about Accenture’s work with federal agencies, its global defense work, and Delivering Public Service for the Future.
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.
Accenture Digital, comprised of Accenture Analytics, Accenture Interactive and Accenture Mobility, offers a comprehensive portfolio of business and technology services across digital marketing, mobility and analytics. From developing digital strategies to implementing digital technologies and running digital processes on their behalf, Accenture Digital helps clients leverage connected and mobile devices; extract insights from data using analytics; and enrich end-customer experiences and interactions, delivering tangible results from the virtual world and driving growth. Learn more about Accenture Digital at www.accenture.com/digital.
AGILEX is a privately-held provider of mission and technology solutions to the national security, healthcare and public sectors. Headquartered in Chantilly, Virginia, Agilex serves a number of the cabinet-level federal departments, including the Departments of Defense, Health & Human Services, Homeland Security, Justice and Veterans Affairs; members of the intelligence community; and a number of independent agencies, such as Amtrak and the United States Postal Service. By bringing together Agility with Expertise, AGILEX helps clients Realize the Value of Information®. For more information, go to www.Agilex.com or call 1-888-3AGILEX.
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 company and Agilex 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 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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