March 10, 2020
Accenture to Acquire ESR Labs to Help Automotive Companies Drive Greater Value from Software
ESR Labs will bring additional scale to Accenture’s focus on smart connected solutions and mobility services
NEW YORK and MUNICH; Mar. 10, 2020 – Accenture (NYSE: ACN) has agreed to acquire ESR Labs, a Munich-based company that develops embedded software for leading German car brands and suppliers. The acquisition will expand Accenture’s capabilities to help its automotive clients drive greater value from software.
Embedded software is the code running on the electronic units that control a vehicle’s functions. Writing it requires a scarce set of experience and skills that the more than 130 software engineers and software architects from ESR Labs will bring to Accenture. ESR Labs also offers solutions to update the code remotely, helps clients develop connected car and mobility services, such as car-sharing, and conducts research into autonomous driving technology.
for leading car brands and suppliers
ESR Labs will join Accenture Industry X.0, the part of Accenture that uses digital technologies to improve how companies design, engineer and manufacture products and services, and operate industrial facilities. As such, ESR Labs will join forces with two other German acquisitions for Industry X.0, strategic design consultancy designaffairs and technology consultancy Zielpuls. Together, they will develop mobility services for carmakers as well as smart connected solutions for medical technology, industrial equipment and high-tech companies.
Andrew Smith, a managing director for Accenture Industry X.0 in Germany, said: “Manufacturing companies need to put software at the core of their business. They also need to adopt and nurture a technology company-like ‘pure developer culture.’ ESR Labs will put us in a great position to help our clients accelerate their plans to do just this.”
Axel Schmidt, a senior managing director and Accenture’s global automotive lead, added: “The automotive industry is at a tipping point. Globally, car sales are declining. Customers are demanding more convenient and customized mobility services. Whoever meets these demands best, will win mobility in the future. With ESR Labs, we can help our clients in the automotive sector embrace and implement new technologies much faster.”
Frank Riemensperger, market unit lead for Accenture in Germany, said: “Bringing together ESR Labs, designaffairs and Zielpuls will go a long way in helping clients in our market tackle their digital challenges. Together, we can help them develop some of the world’s most innovative and high-quality products and services.”
Wolfgang Köcher, CEO of ESR Labs, said: “We’re excited to become a part of Accenture Industry X.0, which will allow us to create groundbreaking technology solution for clients faster than ever. Accenture’s truly global organization will also offer new opportunities to our people.”
ESR Labs will be the latest acquisition that Accenture has made to strengthen Industry X.0. In February, it bought VanBerlo, a Dutch product design and innovation agency. In 2019, it acquired US product innovation and engineering company Nytec and UK innovation firm Happen. In 2018, it bought US embedded software specialist Pillar Technology and US hardware engineering firm Mindtribe.
Completion of the acquisition is subject to customary closing conditions. Financial terms were not disclosed.
About Accenture
Accenture is a leading global professional services company, providing a broad range of services in strategy and consulting, interactive, technology and operations, with digital capabilities across all of these services. We combine unmatched experience and specialized capabilities across more than 40 industries — powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. With 505,000 people serving clients in more than 120 countries, Accenture brings continuous innovation to help clients improve their performance and create lasting value across their enterprises. Visit us at www.accenture.com.
Accenture Industry X.0 helps businesses master the digital reinvention of industry when they use advanced digital technologies to transform core operations and unlock new revenue streams and business models. We support every aspect of our clients’ multi-phase transformation, including workforce, customer experience, R&D, engineering, manufacturing, business support, and ecosystems. Visit https://www.accenture.com/us-en/services/industryx0-index.
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: Accenture and ESR Labs 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 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 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 evolving 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; Accenture could face legal, reputational and financial risks if the company fails to protect client and/or company data from security breaches or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; 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 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; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; as a result of Accenture’s geographically diverse operations and its growth strategy to continue to expand in its key markets around the world, the company is more susceptible to certain risks; 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; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; 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 alliance partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; 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’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; 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; many of Accenture’s contracts include fees subject to the attainment of targets or specific service levels, which could increase the variability of the company’s revenues and impact its margins; Accenture might be unable to access additional capital on favorable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; 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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Contacts:
Lea Treese
Accenture
+49 6173 9461641
lea.treese@accenture.com
Jens R. Derksen
Accenture
+49 175 5761393
jens.derksen@accenture.com
Youssef Zauaghi
Accenture
+49 175 5766458
youssef.zauaghi@accenture.com