Accenture updates M&A budget for technology services acquisitions

Global IT consulting firm Accenture expects to spend approximately $2.5 billion on acquisitions in the company’s current fiscal 2022 year. That number is down from a previous estimate of M&A spending of about $4.0 billion for fiscal 2022.

So is Accenture drastically cutting the company’s acquisition budget? Not really. Accenture CFO KC McClure explained the updated M&A plan as follows:

“We have completed $2.2 billion in acquisitions driven primarily by 27 transactions in the year to date. And we now expect to invest approximately $2.5 billion in acquisitions this year and an additional $1 billion that we expect to close in the first quarter, pending necessary regulatory approvals.”

Added Accenture CEO Julie Sweet:

“From a strategic perspective, we continue to believe that mergers and acquisitions are critical to our growth.”

Related: More than 100 Accenture acquisitions are listed here.

Accenture financial performance, acquisition history

These statements emerged on Accenture’s June 23, 2022 conference call. During the call, a Wall Street analyst asked Accenture if M&A ratings were falling, but the IT consultancy did not directly address that part of the investigation.

Among the upbeat data points Accenture shared on the conference call:

• Q3 2022 revenue was $16.2 billion, up 22% from Q3 2021;
• and net income was $1.82 billion, up 16% from the corresponding quarter last year.
• Additionally, Accenture expects full-year revenue to increase about 25.5% to 26.5% – which is stronger than previously expected.

Many of Accenture’s acquisitions focus on cloud services, cybersecurity, digital transformation, data and analytics, managed services, sustainability and advertising agencies.

Global IT consulting firm Accenture expects to spend approximately $2.5 billion on acquisitions in the company’s current fiscal 2022 year. That number is down from a previous estimate of M&A spending of about $4.0 billion for fiscal 2022.

So is Accenture drastically cutting the company’s acquisition budget? Not really. Accenture CFO KC McClure explained the updated M&A plan as follows:

“We have completed $2.2 billion in acquisitions driven primarily by 27 transactions in the year to date. And we now expect to invest approximately $2.5 billion in acquisitions this year and an additional $1 billion that we expect to close in the first quarter, pending necessary regulatory approvals.”

Added Accenture CEO Julie Sweet:

“From a strategic perspective, we continue to believe that mergers and acquisitions are critical to our growth.”

Related: More than 100 Accenture acquisitions are listed here.

Accenture financial performance, acquisition history

These statements emerged on Accenture’s June 23, 2022 conference call. During the call, a Wall Street analyst asked Accenture if M&A ratings were falling, but the IT consultancy did not directly address that part of the investigation.

Among the upbeat data points Accenture shared on the conference call:

• Q3 2022 revenue was $16.2 billion, up 22% from Q3 2021;
• and net income was $1.82 billion, up 16% from the corresponding quarter last year.
• Additionally, Accenture expects full-year revenue to increase about 25.5% to 26.5% – which is stronger than previously expected.

Many of Accenture’s acquisitions focus on cloud services, cybersecurity, digital transformation, data and analytics, managed services, sustainability and advertising agencies.

Source: Arena 4G