Accenture has acquired Mindtribe and Pillar Technology. The complementary deals expand the global systems integrator's Industry X.0 digital practice -- which leans heavily on agile software and hardware development methods to speed customers' digital transformations.
According to Accenture:
"Industry X.0 helps industrial, high-tech, software, automotive, energy and utility companies address the shift to digital products and services, transform their engineering, manufacturing and field operations, and digitize their enterprises."
The Mindtribe acquisition has been completed. The Pillar deal is expected to close soon. Financial terms for both deals were not disclosed.
Mindtribe & Pillar Technology: Company Backgrounds
Mindtribe, founded in 1998 and based in San Francisco, has 40 professionals who create connected hardware tightly integrated with digital services. The company's expertise includes mechanical and electrical engineering, embedded software development, product realization and rapid prototyping. Mindtribe CEO Steve Myers and his leadership team continue to lead that business, and take on additional responsibilities for Accenture Industry X.0 in North America, the firms say.
Pillar Technology, founded in 1996 and based in Columbus, Ohio, has a team of 320 people across offices in Des Moines, Iowa; Ann Arbor, Michigan; and Palo Alto, California. The firm develops embedded software used in smart, connected products such as autonomous vehicles. It also 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.
Pillar CEO Bob Myers remains 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's integration into Accenture Industry X.0, the companies say.
(Side note: We're checking to see if Bob and Steve Myers are related.)
Acquisitions: Understanding the Why
Explaining these latest acquisitions, Mike Sutcliff, group chief executive, Accenture Digital, said:
“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. 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.”
Accenture's Industry X.0 push has global reach. Other recent moves include opening an innovation hub in Detroit; acquiring Boston-based product design firm Altitude; and acquiring strategic design consultancy designaffairs, the company notes.
Accenture: The Bigger M&A Strategy
Accenture in December 2016 revealed that it had a $1 billion war chest for digital, cloud and security acquisitions. The company since that time has made multiple acquisitions across all three areas, and also emerged as a Top 100 MSSP, according to MSSP Alert.
The overall results appear promising. In its third quarter of 2018, Accenture revenues grew 16 percent to $10.3 billion. That was roughly $270 more than Wall Street was expecting, according to SeekingAlpha.
