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Accenture has bought rival consultancy Navisite in what likely marks one of the firm’s largest acquisitions of the past year.
The deal’s price tag was not disclosed. However, the acquisition announcement did reveal that Navisite has a workforce of about 1,500 people, which makes it one of the biggest companies to have been acquired by Accenture in recent memory. Additionally, Navisite has a significant presence in several high-growth, relatively high-margin areas of the IT consulting market. Those two factors hint that Accenture is paying a significant sum for the firm.
Massachusetts-headquartered Navisite provides technical assistance to big companies adopting the cloud. It can move a firm’s legacy workloads to one of the major public clouds, as well as find ways to run those applications in the most cost-efficient manner.
Accenture disclosed that 400 of Navisite’s employees, or over quarter of its workforce, are cloud engineers. Those staffers have about 2,000 technical certificates, a measure of experience that enterprises often take into account when deciding which consultancy to hire for a project.
“Most enterprise IT environments are not ready for the demands of the AI era,” commented Karthik Narain, the group chief executive of Accenture’s technology consulting business. “Adding Navisite means we can more quickly help clients ‘run to the new’—modernizing at speed while they operate efficiently, through Accenture’s innovation-focused managed services.”
Navisite is also present in several of the other market segments where Accenture is active. It takes on data analytics projects, sets up DevOps pipelines for companies to help their developers code faster and provides cybersecurity services.
Notably, the firm’s competitive focus is not limited to the IT sector alone. It provides outsourced payroll management services and can print business documents on corporate clients’ behalf to save them the hassle of managing a printer fleet.
Navisite will become part of Accenture’s infrastructure engineering group once the corporate integration process is complete. The Massachusetts-based consultancy is bringing with it a large client roster spanning major verticals such as technology, business services, healthcare, life sciences and manufacturing.