Why Accenture (ACN) Is Buying Myrtle Consulting Group And Avenai

By Amit Chowdhry ● October 7, 2020
  • Accenture (NYSE: ACN) announced a couple of acquisitions: Myrtle Consulting Group and Avenai. These are the details.

This week, Accenture (NYSE: ACN) announced a couple of acquisitions. The company is buying Myrtle Consulting Group and Avenai. These are the details.

Myrtle Consulting Group Deal

Myrtle Consulting Group is an industrial operations consulting firm based in Houston. Myrtle works with leading companies across consumer products, life sciences, chemicals, mining, and other heavy manufacturing industries to produce and distribute goods in a safer, more efficient, and sustainable way.

This acquisition will expand Accenture’s manufacturing and supply chain capabilities. And specifically, it will strengthen Accenture’s ability to transform these areas for clients from initial value assessments and operating model strategies to new business processes and technology solutions. Myrtle’s team is going to join Accenture Industry X — which helps clients improve how they operate factories and plants.

Myrtle is specializing in optimizing clients’ sourcing, production, supply chain operations, and execution. And the company also has deep expertise in change management methodology, organization design and implementation, leadership development, and frontline coaching. The work examples include:

– Achieving $20 million in annual savings, decreasing overtime labor spend by 56% and improving yield by 20% for a global dairy producer that struggled with an inefficient supply chain

– Increasing customer satisfaction and uptime while reducing employee turnover for a pharmaceutical company by improving its management operating systems and training its leaders

Myrtle is recognized as a National Minority Supplier Development Council Corporate Plus member. And the NMSDC Corporate Plus program is designed to highlight minority-owned businesses that have demonstrated their capacity to execute national and international contracts for major corporations.

Edwin Bosso, CEO and founder of Myrtle, will be joining Accenture as managing director. Bosso is the author of the best-selling Amazon book 6,000 Dreams: The Leader’s Guide To A Successful Business Transformation Journey.

Through the Myrtle deal, Accenture will continue to bolster its digital manufacturing, operations and supply chain capabilities, following the acquisitions of technology consultancy SALT Solutions in Germany, PLM Systems in Italy, Callisto Integration in Canada, Silveo in France and Enterprise System Partners in Ireland.

The completion of the acquisition is subject to customary closing conditions. And financial terms of the acquisition were not disclosed.

Key Quotes About The Myrtle Consulting Group Deal:

“Cost, quality and safety remain a constant and rising challenge for manufacturing and operations leaders. They need to free untapped value across production sites and distribution centers, so they can invest in resilient and responsible operating models for manufacturing and supply chains that are future-proof and digital-enabled. This is what the combined skills of Accenture and Myrtle will help them achieve.”

— Nigel Stacey, global lead of Accenture Industry X

“Becoming part of Accenture Industry X will allow us to pair our frontline operational expertise with Accenture’s global reach and digital capabilities to bring solutions to clients that will transform their operations from the ground up.”

— Edwin Bosso, CEO and founder of Myrtle

Avenai Deal

Accenture (NYSE: ACN) also agreed to acquire Avenai — which is an Ottawa-based provider of consulting and technology services. The financial terms were not disclosed. And with Avenai’s significant focus on the public sector market, the acquisition is going to enhance Accenture’s capacity to drive the technology transformation taking place across the public sector in Canada.

Since being established in 2012, Avenai has built a strong reputation with government and commercial clients in the Ottawa and Toronto regions, growing from four to more than 70 employees. And Avenai supports key aspects of business change, including strategy development, process improvement, IT-enabled business transformation, and organization culture transformation.

Avenai founders Chris Brennan, Mike Scotten, and Brendan Timmins will join Accenture as managing directors in its Strategy & Consulting practice. And they will continue to lead the team they helped build at Avenai and will also work with Accenture leadership across other practices to shape and pursue new business opportunities. Avenai’s employees will also join Accenture’s Strategy & Consulting practice.

The acquisition is subject to customary closing conditions.

Key Quotes About Avenai Deal:

“Accenture and Avenai share values of delivery excellence, collaboration and community. Our team is excited about the opportunity to bring our expertise together with Accenture’s to provide the best outcomes for our clients and new opportunities for our people.”

— Chris Brennan, Avenai’s CEO and co-founder

“COVID-19 is leading many Canadian organizations to accelerate their technology transformations to ensure they come out ahead in this new reality, and that’s why we are adding significantly to our team of experts in Ottawa. We look forward to working with the Avenai team to help our clients transform to meet the challenges of today and the future.”

— Jeffrey Russell, president of Accenture in Canada

“Government organizations are at a digital transformation tipping point, with many departments and agencies rapidly moving to the cloud and embracing new ways to modernize and improve delivery models and services for Canadians. Avenai brings a stellar consulting team that will be amplified by Accenture’s global reach to support our clients’ broad ambitions.”

— Mark Lambert, managing director and federal public service practice lead in Canada