Accenture (ACN) to Benefit From Linkbynet Buyout: Here's How

·3-min read

Accenture plcACN yesterday announced its plans to acquire Linkbynet, a cloud services provider. Financial terms of the deal have been kept under wraps.

Based in Saint-Denis, France, Linkbynet is specialized in cloud optimization and managed services, cloud transformation, and cloud security. The company was founded in 2000 and has additional offices in Belgium, Canada, China, France, Luxembourg, Mauritius, Singapore and Vietnam.

Over the past year, shares of Accenture have gained 59% compared with 62.1% rise of the industry it belongs to and 50.4% growth of the Zacks S&P 500 composite.

How Will Accenture Benefit?

Linkbynet’s team of over 900 skilled professionals will be joining Accenture Cloud First. The latest deal is expected to help Accenture enhance its Accenture Cloud First capabilities, which will in turn aid clients’ cloud migrations and business transformations. The combination of Accenture’s and Linkbynet’s technical expertise should provide customers with enhanced services in digital projects across multiple sectors.

Notably, Karthik Narain, global lead at Accenture Cloud First, stated, "Acquiring Linkbynet would be another strategic step in strengthening our Accenture Cloud First capabilities." He further added, "Linkbynet’s talented team would bring deep cloud and engineering specialization, managed services, sophisticated technology tools and cybersecurity intelligence."

Olivier Girard, market unit lead for Accenture France & Benelux, stated, " With advisory and digital transformation experience across cloud implementation, security, management and optimization, the Linkbynet team brings critical skills that would help Accenture clients adopt emerging technologies and scale them across their enterprise for strategic agility in a challenging business environment."

Further, Linkbynet complements Accenture’s prior initiatives in strengthening its cloud services capabilities globally, which include acquisitions of Edenhouse (United Kingdom), Infinity (United Kingdom) and Cygni (Sweden) in 2021, Gekko in June 2020 and Cirruseo in June 2019.

Zacks Rank and Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Business Services sector are Equifax EFX, Charles River CRAI and TransUnion TRU, each carrying a Zacks Rank #2 (Buy).

The long-term expected earnings per share (three to five years) growth rate for Equifax, Charles River and TransUnion is 14%, 15.5% and 20.9%, respectively.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

AccessZacks Top 10 Stocks for 2021 today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Charles River Associates (CRAI) : Free Stock Analysis Report

Accenture PLC (ACN) : Free Stock Analysis Report

TransUnion (TRU) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting