Accenture Snaps Up Edenhouse For Digital Push
Accenture on Feb. 15 announced the acquisition of UK-based Edenhouse to better support clients in their digital transformation needs. Financial terms of the transaction were not disclosed.
Edenhouse, an SAP platinum partner, has expertise in sale, implementation, support and hosting of SAP products and servicing mid-sized clients. The company’s 220 employees will join Accenture’s (ACN) SAP business group in the UK and support local business while getting access to global resources.
Accenture’s John Ellingsen said, “With Edenhouse as part of Accenture, the company is in an even better position to help its UK clients harness change and speedup their transformation.”
Ellingsen added that the COVID-19 pandemic has spurred demand for SAP’s cloud based solutions and the addition of skills from Edenhouse will help Accenture meet client needs faster.
The deal comes after Accenture October 2020 bought New Zealand-based Zag, a SAP and cloud solutions provider. (See Accenture stock analysis on TipRanks).
Accenture shares have gained about 21% over the past year. Nonetheless, Berenberg Bank analyst Tej Sthankiya on Feb. 2 lifted the stock’s price target to $285 from $258 (implying 10.7% upside potential) and reiterated a Buy rating.
The rest of the Street is cautiously optimistic about the stock. The Moderate Buy consensus rating shows 9 Buys and 6 Holds. That’s alongside an average analyst price target of $279.07, which implies 8.4% upside potential lies ahead over the coming 12 months.
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