- Buys hardware engineering firm Mindtribe and announces intent to acquire embedded software company Pillar Technology
- Boosts ability to help companies innovate smart, connected software and hardware products
SAN FRANCISCO and COLUMBUS, OH; Aug. 9, 2018 – Accenture (NYSE: ACN) has made two major moves to expand its Industry X.0 practice. The company acquired hardware engineering firm Mindtribe and entered into an agreement to buy smart embedded software company Pillar Technology. The two acquisitions will significantly boost Accenture’s ability to help companies redefine smart connected software and physical products as the lines blur between the physical and digital world. Accenture Industry X.0 helps industrial, high-tech, automotive, energy and utility companies address the shift to digital products and services, transform their engineering, manufacturing and field operations, and digitize their enterprises. “Products are no longer simply physical things—they are evolving to be connected platforms that are powered by artificial intelligence, the Internet of Things, and cloud and edge computing,” said Mike Sutcliff, group chief executive, Accenture Digital. “With our Industry X.0 capabilities, we are helping our clients create the products of the future with the required expertise in digital technologies, software development, product engineering, as well as user experience and product design. These acquisitions will fuel our drive to become a leader in developing connected products and services.”
Julie Sweet, Accenture’s chief executive officer, North America, added: “Our investment in innovation is an investment in our clients. These acquisitions follow the opening of our new Industry X.0 innovation hub in metro Detroit, further expanding our capabilities to help companies across a range of industries rapidly co-create, prototype and launch connected products and services to unlock new revenue streams and business models.”
Mindtribe has a team of 40 professionals and is based in San Francisco. It creates innovative connected hardware tightly integrated with digital services. Having pioneered the use of agile techniques for hardware, the team can deliver user value faster and shorten development cycles. It has created class-leading technology products for many iconic brands and high-tech companies. Headquartered in Columbus, Ohio, Pillar Technology has a team of 320 people and offices in Des Moines, Iowa, Ann Arbor, Michigan, and Palo Alto, California. It possesses more than 20 years of experience in the rapid/agile development of high-quality and user-friendly embedded software used in smart, connected products such as autonomous vehicles.
Pillar Technology fuses elegant physical products with digital services that increase the benefit for end users and offer new ways to attract and serve customers. It has worked on reinventing the concept of hardware products with many iconic brands and high-tech companies.
Steve Myers, CEO of Mindtribe, said, “Mindtribe has always sought to build groundbreaking connected products and services, and we are proud to be behind some of the world’s most high-profile product successes. Now, 20 years after the foundation of Mindtribe, the most exciting part of our journey is still ahead of us, and we are looking forward to moving ahead as part of the Accenture Industry X.0 team.”
Bob Myers, CEO of Pillar Technology, said, “Our ambition is to provide the best possible software — embedded or connected — at lightning speed. We focus on value and fast feedback loops that put user experience at the forefront. Joining Accenture‘s Industry X.0 practice will allow us to bring this focus on speed-to-value to even more clients. We’re excited to be a part of how Industry X.0 will help clients reach new heights in the U.S. and globally.”
As an area that represents significant growth opportunities for clients, Accenture is focused on strengthening its capabilities in Industry X.0 globally. For example, Accenture recently launched a new Industry X.0 innovation hub in metro Detroit, acquired Boston-based product design and innovation firm Altitude, and completed its acquisition of strategic design consultancy designaffairs.
Mindtribe’s San Francisco office and team offer all interdisciplinary skills and physical hardware engineering equipment that clients need to build connected products from concept through production.
Pillar Technology will add a unique approach, called “The Forge,” that brings together business strategists, creatives, developers and clients to collaborate on solving business problems in a no-constraints, innovative environment.
More on Mindtribe
- Mindtribe was founded in 1998. Its expertise and services include mechanical and electrical engineering, embedded software development, product realization and rapid prototyping.
- Steve Myers and his leadership team will continue to lead Mindtribe’s business and take on additional responsibilities for Accenture Industry X.0 in North America.
- The Mindtribe team will work hand in hand with Accenture’s Industry X.0 team and professionals from Accenture Interactive’s San Francisco Fjord studio, which received a talent boost with Fjord’s acquisition of design & innovation firm MATTER last year. Mindtribe and MATTER have previously collaborated on the invention of Well, a smart home water conservation system.
More on Pillar Technology
- Pillar Technology was founded in 1996. It offers rapid and agile development and testing of enterprise-grade applications, software products and platforms associated with physical products, and digital services engineering for hardware products.
- Upon closing, Bob Myers will continue to be responsible for the Pillar Technology business. In addition, he will lead Accenture Industry X.0’s smart products & embedded solutions practice. His leadership team is expected to continue in their roles and support Pillar Technology’s integration into Accenture Industry X.0.
- The Mindtribe acquisition has been completed. Completion of the acquisition of Pillar is subject to customary closing conditions. Financial terms for both transactions were not disclosed.
About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 449,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
Accenture Industry X.0 helps businesses master the digital reinvention of industry when they use advanced digital technologies to transform core operations and unlock new revenue streams and business models. We support every aspect of our clients’ multi-phase transformation including workforce, customer experience, R&D, engineering, manufacturing, business support and ecosystems. Visit www.accenture.com/industry-x0.
Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: Accenture and Pillar Technology will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transactions with either Pillar Technology or Mindtribe might not achieve the anticipated benefits for Accenture; Accenture’s results of operations could be adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the changing technological environment could materially affect the company’s results of operations; if Accenture is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture could have liability or Accenture’s reputation could be damaged if the company fails to protect client and/or company data from security breaches or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; Accenture might not be successful at identifying, acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s global delivery capability is concentrated in India and the Philippines, which may expose it to operational risks; as a result of Accenture’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; adverse changes to Accenture’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; if Accenture is unable to protect its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; any changes to the estimates and assumptions that Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; many of Accenture’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; Accenture might be unable to access additional capital on favorable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
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