MW Transaction Analysis
Accenture Buys Procurian for $375 Million
- Total Transaction Size: $375 million
- Transaction Structure: Cash
- Accenture (NYSE:ACN) announced today it will acquire Procurian, a leading provider of procurement outsourcing services, for $375 million in cash. Additional financial details of the transaction were not disclosed.
- However, it was reported that Procurian's revenue for the last 12 months was about $142.6 million. That would peg the approximate valuation of the deal at 2.6x revenue.
- Headquartered in King of Prussia, PA, Procurian focuses on delivering services to the Global 2000 from locations in the United States, India, the United Kingdom, the Czech Republic, China and Brazil. Procurian is a subsidiary of the private equity firm, ICG Group, Inc. (Nasdaq: ICGE).
- The acquisition is expected to close by the end of the calendar year. All of Procurian's 780 employees around the world are expected to join Accenture.
Solidifying leadership in a core space
- The acquisition of Procurian solidifies Accenture's leadership position in the procurement outsourcing space - a position that was strengthened in late 2010 when the firm acquired Ariba's sourcing services and business process outsourcing (BPO) services assets for $51 million.
- Accenture was one of several companies vying to purchase Procurian, testimony to Procurian's functional expertise and the strength of Accenture's offer.
- Accenture has been on acquisition spree in 2013, buying companies that fill in gaps in its offerings or consolidate its position in a market. When the Procurian acquisition is completed, it will mark the firm's 13th acquisition this year.
For more information, see the press release.
martinwolf was not the advisor in this transaction.
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