ARLINGTON, Va. – Accenture (NYSE:ACN) Federal Services (AFS), a subsidiary of Accenture (NYSE: ACN), is set to acquire Cognosante, a company specializing in digital transformation and cloud modernization for federal health and other government agencies.
The acquisition, pending regulatory approval and customary closing conditions, aims to bolster AFS's capabilities in delivering technology solutions to federal clients. Terms of the deal were not disclosed.
Cognosante, founded in 2008, has established itself as a key player in the federal technology sector, particularly known for enhancing healthcare accessibility and equity through its programs. It boasts a strong track record of delivery, powered by expertise in technology, cloud modernization, and program management.
John Goodman, CEO of Accenture Federal Services, stated that the acquisition is aligned with AFS's commitment to continuous innovation and investment to meet the evolving needs of federal missions and customers. Goodman expressed confidence in the Cognosante team, highlighting their impact and capabilities.
Upon completion of the acquisition, Cognosante's workforce of over 1,500 will join AFS's team of more than 14,000, with the goal of reimagining workflows, addressing critical challenges, and fostering meaningful change.
Michele Kang, founder of Cognosante, conveyed enthusiasm for the new chapter and emphasized the alignment of both companies' dedication to client service and growth. Kang also expressed gratitude for the contributions of Cognosante's employees and clients to the company's success.
Accenture Federal Services, as a part of Accenture LLP, is known for empowering federal agencies with digital and smart solutions to address challenges and create secure digital cores. The acquisition of Cognosante is expected to further enhance AFS's service offerings and impact on the nation's priorities.
The information for this article is based on a press release statement.
InvestingPro Insights
As Accenture (NYSE: ACN) moves to strengthen its federal services through the strategic acquisition of Cognosante, investors and stakeholders are keenly observing the company's financial health and market position. According to InvestingPro data, Accenture boasts a robust market capitalization of $199.09 billion, underscoring its significant presence in the IT Services industry.
Despite the company trading at a high Price/Earnings (P/E) ratio of 28.32, which suggests a premium valuation relative to near-term earnings growth, Accenture's commitment to innovation and expansion could justify investor confidence.
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