Why Accenture (ACN) Is Acquiring Engineering And Operational Capabilities From Trancom

By Amit Chowdhry ● Apr 3, 2022
  • Accenture (NYSE: ACN) recently announced it is buying digital engineering and operational technology capabilities from Trancom ITS. These are the details.

Accenture (NYSE: ACN) recently announced it is buying digital engineering and operational technology capabilities from Trancom ITS, a Japanese logistics technology services provider. This acquisition will enable Accenture’s Industry X service to offer hyper-automation solutions at scale, which manufacturing and logistics companies in Japan are increasingly demanding to become more efficient and sustainable in their core operations. The terms of the transaction were not disclosed.

Trancom’s hyper-automation solutions help organizations rapidly identify and automate many business processes and assets. And the approach relies on advanced digital technologies such as artificial intelligence (AI) and robotics.

Accenture is going to acquire capabilities from Trancom ITS for systems integration, consulting, software development, and outsourcing. And these include logistics and technological know-how and most of its client contracts. About 190 engineers from Trancom ITS – specializing in cloud-based logistics systems and optimizing warehouse operations with IoT and sensor technology – will join Accenture Industry X in Japan.

For example, systems integration capabilities and logistics expertise from Trancom ITS is going to enable Accenture to expand its AI-powered supply chain management service to more clients. And the service uses AI and predictive analytics to refine its logistics and delivery planning, automate and visualize warehouse operations, and reduce manual labor.

Trancom ITS provides technology services to its parent company Trancom and other Japanese companies in the logistics, manufacturing, and information technology industries. And its portfolio includes the development and integration of warehouse management systems and delivery management systems.

Upon the close of the deal, Trancom ITS will continue to service Trancom, whereas its other client relationships will be transferred to Accenture. And Accenture and Trancom are also planning to collaborate on other joint solutions that accelerate the digital transformation of Trancom and clients in the logistics and manufacturing industries.

 The acquisition of capabilities from Trancom ITS is going to mark the next big step Accenture is taking to strengthen its offering in Japan for digitizing the entire engineering and manufacturing value chain. And it follows the acquisition of product lifecycle management and application lifecycle management capabilities from Japan’s DI Square in August 2021.

 Other recent acquisitions Accenture has made for Industry X in other markets include asset performance management consultancy T.A. Cook (Germany), systems integrator for Hexagon’s Infor EAM solutions Advoco (US), international engineering consulting and services firm umlaut, operations technology provider Electro 80 (Australia), and industrial robotics and automation services provider Pollux (Brazil).

The completion of the acquisition is subject to customary closing conditions.

KEY QUOTE:

“We’re seeing significant demand from clients to help them automate manual processes in factories and warehouses. By combining assets from Trancom ITS with our AI and robotics capabilities, we can drive more value from these processes for clients and help them become more sustainable.”

— Tatsuya Nakayabu, senior managing director and lead for Accenture Industry X in Japan