Accenture Acquires Intrepid To Boost Digital Design Services

In an effort to further enhance its digital design services, Accenture Plc (NYSE:ACN) recently acquired Cambridge-based mobile design and development company – Intrepid. However, the financial details of the transaction have been kept under wraps.

Founded in 2010 by the company’s chief executive – Mark Kasdorf – Intrepid offers end-to-end digital product strategy, design and development services through its offices in Cambridge, MA and Union Square (NYSE:SQ), NYC. The company has approximately 150 employees. Intrepid’s client list includes some big names such as WBUR, Procter & Gamble Co. (NYSE:PG) and Newbury Comics.

It should be noted that Intrepid’s services are mostly bent toward connected devices. Therefore, the integration of the company’s services will expand “Accenture’s capabilities in design, native app development, connected device engineering and web development in North America, strengthening its ability to help clients take the lead in an era where connected experience is the new battleground.”

The latest deal is anticipated to further boost Accenture’s ability to help clients design and create physical products. The acquisition of Intrepid will not only bring in a huge talent pool, but will also expand its reach in different markets.

We are encouraged by Accenture’s strategy of growing through acquisitions. These buyouts have enabled the company to foray into newer markets, diversify and broaden the product portfolio, as well as maintain a leading position. We believe that regular acquisitions will significantly contribute to its revenue stream.

Notably, shares of Accenture have outperformed the Zacks categorized Consulting industry, over the last one year. The stock has gained 9.2% compared with the industry’s gain of 8.5%.

Nonetheless, Accenture’s latest announcement of creating 15K new jobs by 2020 and investment plan of $1.4 billion for employee training and opening of 10 innovation centers across the U.S. cities may dent its bottom-line results. Increasing competition from the likes of DXC Technology Company (NYSE:DXC) and Cognizant Technology Solutions Corporation (NASDAQ:CTSH) , as well as an uncertain macroeconomic environment may deter the company’s growth to some extent.

Currently, Accenture carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>