Accenture-DayNine Spotlight

Accenture
DayNine

Accenture Acquires DayNine

 

Financial Terms

  • Undisclosed

 

Transaction Highlights

  • On Monday, September 26, 2016, Accenture PLC (NYSE: ACN) entered into an agreement to acquire DayNine Consulting, a global Workday consulting and deployment services firm.
  • The transaction continues to accelerate Accenture’s Cloud First agenda, following the acquisitions of New Energy Group (Salesforce, Digital Marketing), Cloud Sherpas (Salesforce, Google Enterprise), CRMWaypoint (Salesforce, EU), Tquila UK (Salesforce), and ClientHouse (Salesforce, Germany).
  • DayNine is one of only 33 Workday services partners, and is expected to strengthen Accenture’s already robust Workday capabilities, providing 1,250 additional Workday certifications to Accenture’s 1,200.

 

Race to the Cloud

  • System integrators that are specialized in specific cloud platforms are getting pursued and acquired by larger players that have not organically developed such depth in platforms that are getting adopted at large enterprises.
  • Every $1 of new SaaS application sales drives $8-10 of System Integrator services. With the rapid transition of enterprise applications to the cloud, and the time and down-time costs it takes for large enterprises to build cloud implementation capabilities, we expect to see continued M&A to fill the skill / capability gaps.
  • Other notable transactions in the cloud system integrator space include IBM’s acquisition of Bluewolf (Salesforce cloud) and Cognizant’s acquisition of KBACE Technologies (Oracle cloud).

 

Size Matters, Growth Matters

  • Since the leading driver for M&A in the space is time to market, large acquirers want to snap the biggest bite they can chew.
  • Having the processes and systems to effectively scale are key drivers for such premium acquisitions, and growth on a platform with scale is being given a priority over bottom-line profitability.
  • Day Nine had established itself as a leader in the space early on and had raised a minority growth equity investment to fund its growth from Pamlico capital in July 2014.

 

TBP was NOT an advisor to this transaction