October 03, 2019
Accenture to Acquire Nytec to Innovate Connected Experiences for Clients
Acquisition will add deep expertise in IoT engineering and software platform development to Accenture Industry X.0
NEW YORK and KIRKLAND, WA ; Oct. 3, 2019 – Accenture (NYSE: ACN) has entered into an agreement to acquire Nytec Inc., an award-winning product innovation and engineering company. Founded in 1975, Nytec is headquartered in Kirkland, WA, and has a team of 250 professionals.
Nytec will become part of Accenture Industry X.0, which offers capabilities that drive the digital reinvention of industry. This includes creating new types of products, services and experiences, and better ways to design, engineer, manufacture, operate and support them across their entire lifecycle.
in software development and engineering to Accenture Industry X.0 (© Nytec 2019)
Nytec will expand Accenture Industry X.0’s ability to innovate connected, Internet-of-Things (IoT)-enabled experiences for clients from idea through to realization — an area in which both Accenture and Nytec have already demonstrated success. Nytec is Select Innovation Partner for IoT Equipment Design and Engineering for Carnival Corporation’s Ocean Medallion™ guest experience transformation, while Accenture has been named Premier Innovation Partner for Carnival Corporation’s Global Experience and Innovation Team.
Nytec will add deep expertise in software platform development and engineering to Accenture Industry X.0 that is required to build the underlying IoT infrastructure and systems for connected experiences, particularly for clients in the consumer tech, industrial high tech, hospitality, travel, and consumer goods and services industries.
Nytec operates an end-to-end LEED Platinum certified Product Innovation Center (PIC) in Kirkland, WA where it offers design, prototype development, engineering and support services for manufacturing. Accenture is planning to expand the PIC and bring it into its network of Forges, which is part of its global Industry X.0 Innovation Network of more than 20 facilities. The network combines startup thinking with rapid prototyping, delivery and ramp-up capabilities to co-develop new products and services with clients and bring them to market quickly.
“Our ambition is to become a key partner for clients wanting to transform their business through innovation that is coming from the fusion of software, physical products and connectivity,” said Craig McNeil, Accenture Industry X.0 lead, North America. “We’ve been building the skillset to deliver on this ambition, in part through our acquisitions of hardware engineering company Mindtribe and embedded software development firm Pillar Technology, and with Nytec we will continue to expand it.”
“Our designers, engineers, and manufacturing experts translate complex problems into compelling, simple solutions that deliver the ultimate user experience,” said Rich Lerz, CEO of Nytec. “Becoming part of Accenture Industry X.0 will allow our team to scale services for our clients and get access to the best brands in the world.”
Other acquisitions that have strengthened Accenture Industry X.0 include product design and innovation firm Altitude in Boston, strategic design consultancy designaffairs, and technology consultancy Zielpuls, both in Munich, Germany.
The transaction 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 and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions — underpinned by the world’s largest delivery network — Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 492,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. 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 Nytec 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 changing 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 geographic expansion, 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; 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’s ability to attract and retain business and employees may depend on its reputation in the marketplace; 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 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; 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 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; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; 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 U.S. 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:
Alexander Aizenberg
Accenture
+1 646 334 9215
alexander.aizenberg@accenture.com
Zoey Farooq
Accenture
+1 415 537 5413
zoey.farooq@Accenture.com
Jens R. Derksen
Accenture
+491755761393
jens.derksen@accenture.com