Accenture to Acquire CAS Computer - Analyst Blog

Technology outsourcing and consulting major Accenture plc (ACN) recently announced its intention to acquire Germany-based customer relationship management (CRM) and mobility software provider CAS Computer AG. The acquisition is expected to close by the end of January 2011. Financial terms of the deal were not disclosed.

CAS Computer provides software applications that facilitate organizations to better manage their trade promotions, retail executions and customer service. The company's services are specifically targeted at organizations operating in the consumer products industry.

CAS Computer's client base includes leading brand manufacturers such as Campbell Soup Company (CPB), Coca-Cola Company (KO), GlaxoSmithKline plc (GSK), Henkel, Molson Coors Brewing Company (TAP), Nestlé and Reynolds American, Inc. (RAI).

The acquisition will make Accenture's CRM service suite more insightful. Accenture will integrate the new unit under its software business, but will use CAS brand name. Following the acquisition, Accenture will be able to capitalize on CAS Computer's intellectual property and its global customer base.

We think the combined effort will improve the adaptability of Accenture's products, especially at Retail customers. The improved solutions will enable retailers to efficiently build an in-store strategy through improved product promotions and marketing within the store, thereby boosting sales.

We find consecutive acquisitions by Accenture encouraging, as they help to strengthen the company's product portfolio. With technology spending on the rebound, demand has been on an uptrend in recent months, enabling the company to beat the Zacks Consensus Estimate in the last quarter. Even more encouraging was the increase in new business, which seems to indicate that spending is likely to be sustained or grow from these levels. However, we prefer to take a cautious stance until there is further momentum.

Currently, Accenture has a short-term Hold recommendation, implying a Zacks #3 Rank.

 
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