CHICAGO - Thoughtworks (NASDAQ: TWKS), a global technology consultancy firm, has completed the acquisition of a team of artificial intelligence (AI) specialists and technological assets from Watchful, a company based in San Francisco known for expediting the development and deployment of AI models.
The transaction, which includes the onboarding of seven experts, including Watchful co-founders Shayan Mohanty and John Singleton, aims to bolster Thoughtworks' capabilities in delivering AI and data solutions to its clients.
The integration of Watchful's technology into Thoughtworks' suite of services is expected to enhance the consultancy's ability to move AI projects from proof of concept to production more swiftly, promising clients quicker returns on their AI investments.
The specific terms of the deal were not disclosed, but it was made clear that Watchful's current business operations would cease, and existing clients would continue to receive support for their subscriptions.
Guo Xiao, CEO of Thoughtworks, expressed enthusiasm about the acquisition, highlighting the challenges enterprises face in bringing AI use cases into production. Xiao believes that the inclusion of Watchful's technology and expertise will significantly improve their clients' ability to deploy AI effectively, thereby creating a competitive advantage.
Shayan Mohanty, now Thoughtworks' Head of AI Research, echoed this sentiment, stressing the importance of fast, explainable AI models that can incorporate domain expertise and provide insights into performance. Thoughtworks' acquisition is seen as a strategic move to strengthen its position as a leading partner in AI transformation.
The announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Thoughtworks has cautioned that actual future results may differ materially from current expectations due to various factors, including but not limited to, market conditions, client relationships, talent acquisition, and the broader economic environment.
Thoughtworks is a renowned technology consultancy with over 10,500 employees across 48 offices in 19 countries. For three decades, the company has partnered with clients to address complex business problems through technology. The acquisition of Watchful's team and technology is a step further in reinforcing Thoughtworks' commitment to driving digital innovation in the AI space.
InvestingPro Insights
In the wake of Thoughtworks' strategic acquisition of AI specialists from Watchful, current and potential investors might be keen on understanding the company's financial health and market performance. According to InvestingPro data, Thoughtworks (NASDAQ: TWKS) currently holds a market capitalization of $732.82 million.
Despite the forward-looking nature of this acquisition, Thoughtworks has been facing some headwinds, as evidenced by a revenue decline of 13.07% over the last twelve months as of Q1 2023. This trend appears to continue with a quarterly revenue decrease of 18.78% in Q1 2023.
InvestingPro Tips indicate that analysts have revised their earnings expectations downwards for the upcoming period, which may reflect concerns about the company's near-term profitability. Moreover, Thoughtworks does not pay a dividend to shareholders, which could influence investment decisions for those seeking income-generating assets.
Nevertheless, the company's liquid assets exceed its short-term obligations, suggesting a stable financial position for managing current liabilities.
For investors considering Thoughtworks as part of their portfolio, the company is trading near its 52-week low, which, according to some InvestingPro Tips, could present a buying opportunity if the market has overreacted to the negative sentiment.
It is worth noting that there are 13 additional InvestingPro Tips available that could provide further insights into Thoughtworks' performance and outlook. For those interested in a deeper dive, using the coupon code PRONEWS24 can secure an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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