Accenture (ACN) Subsidiary Completes Acquisition of Cognosante

Group 1: Company Overview - Accenture plc (ACN) shares have increased by 5% over the past year, underperforming the industry average of 12% [1] - Accenture Federal Services has acquired Cognosante, a Virginia-based provider of digital transformation and cloud modernization solutions, although financial terms remain undisclosed [1] - Cognosante, founded in 2008, employs 1,500 professionals and specializes in technology solutions for federal government clients, particularly in healthcare programs [1] Group 2: Strategic Implications - The acquisition establishes a new federal health portfolio aimed at enhancing health outcomes and creating more accessible healthcare experiences [2] - Accenture Federal Services CEO John Goodman emphasized that the acquisition will leverage Cognosante's capabilities and Accenture's commercial innovation to accelerate impact for clients and provide career growth opportunities [2] - This move is a significant step in Accenture's strategy to enhance public service offerings, particularly in the healthcare sector, positioning the company to lead in transforming public healthcare services [2] Group 3: Market Position - Accenture currently holds a Zacks Rank of 4 (Sell) [3] - Competitors in the broader Zacks Business Services sector include Aptiv (APTV) and Booz Allen Hamilton (BAH), both of which have better rankings [3] - Aptiv has a long-term earnings growth expectation of 16.4% and has consistently surpassed earnings estimates, while Booz Allen Hamilton has a long-term growth expectation of 12.6% [3]