Consulting M&A Weekly Round-up (28th to 3rd June, 2023)

by | Jun 5, 2023 | 0 comments

Welcome back to our weekly consulting M&A round-up! As always, we have a lot of exciting news to discuss, but this week’s highlights include some major deals from Deloitte and Accenture.

We’ll take a closer look at these acquisitions, along with other deals that happened during the week gone by. With so much happening in the world of consulting M&A, there’s never been a better time to stay on top of the latest developments. So, let’s dig in and explore what’s been happening in the industry this week!

#1. Deloitte buys product engineering firm Optimal Design

Deloitte US has acquired Optimal Design, a Chicago-based provider of product engineering services (PES) with a focus on the Internet of Things and linked devices.

Optimal Design, which founded in 2003, offers industrial design, hardware engineering, embedded software, connectivity, and prototyping services. The firm works with clients in consumer products, technology, automotive, medical, industrial, and aerospace & defense, and has co-invented hundreds of products for clients that have been granted patents.

The acquisition of Optimal Design will expand Deloitte’s PES capability, which supports clients throughout the innovation continuum, from product conception to prototype development.

#2. Accenture snaps up Australian SAP consultancy Bourne Digital

Bourne Digital, which was formed in 2015 and which is based in Melbourne, has been bought by professional services giant Accenture. This is the latest in a long line of cloud and tech companies that Accenture has bought.

Bourne Digital, which was founded in Sydney in 2015, is a company that has won multiple SAP innovation awards and in 2019 became the first SAP partner to launch a UX design and innovation ‘AppHaus’ on the Australian market. Using a human-centered design approach, the consultancy assists clients with the development and integration of digital and cloud-based solutions.

Accenture’s long history and experience with large-scale technology transformation projects and Bourne Digital’s top talent and user-led design skills make them a strong pair in the Australian market, according to one of the officials at Accenture.

#3. Ankura purchases GreenPoint Group and Newstate Partners

GreenPoint Group, a US-China strategic advisory firm, and Newstate Partners, a global sovereign debt advisory firm, have both been acquired by the consulting firm Ankura.

GreenPoint Group, which was established in 2010, has locations in both Washington, DC and Beijing. The boutique firm assists multinational corporations and non-profit organizations in comprehending and navigating China’s commercial, economic, political, and social environment.

On the other hand, Newstate Partners was established in 2009 and has its main office in London. Governments, public sector institutions, and creditors are advised by the firm on public finance-related matters, such as debt restructuring and asset and liability management.

Relations between the US and China are complicated. And with the acquisition of GreenPoint, Ankura has a team of world-class global and regional experts who will ensure clients can anticipate and manage risks and do well in the face of uncertainty.

And as far as the Newstate Partners deal is concerned, sovereign debt expertise is in high demand right now and Newstate is the right partner at the right time, according to one official at Ankura.

#4. Publicis Sapient takes on full stake in Publicis Sapient AI Labs

In an effort to strengthen its digital business transformation services, Publicis Sapient has acquired a 100 percent stake in an AI lab it co-founded. Globally, Publicis Sapient serves large enterprises, and this shift will strengthen the company’s data science talent pool.

Artificial intelligence (AI) is one of the most talked-about new technologies of the past few years. Businesses all over the world are in a rush to use AI solutions that can automate jobs that used to be done by humans, like administration and consulting. Professional services firms are also in a rush to position themselves as the best advisors for using AI solutions.

Hence, Publicis Sapient has stated that it has bought all of the shares in Publicis Sapient AI Labs. This is a joint venture for AI research and development that it started with Elder Research and Tquila in 2020. By taking full control of the organization, the move makes Publicis Sapient’s data and AI skills stronger.

According to a statement from the company, this will help it create “innovative solutions” for a wide range of businesses and uses, such as “generative AI, natural language processing (NLP), computer vision, and autonomous systems.”

#5. Deltek to acquire Calgary-based enterprise software firm Replicon

US-based Deltek, which specializes in enterprise software for project-based businesses, has agreed to acquire Calgary-based knowledge workforce management solutions provider Replicon.

Replicon, which founded in 1996, specializes in time monitoring software for project- and services-focused organizations, including some of the largest professional services firms. The firm’s software is utilized by over 2,500 clients for unified project time management, project billing, time and attendance, compliance, professional services automation, and automated time entry. Moreover, Replicon has over 700 employees in Canada, the United States, the United Kingdom, India, and Australia.

The acquisition of Replicon by Deltek will enhance its enterprise software and information solutions for project-based businesses. Furthermore, the transaction is anticipated to conclude within the next few weeks, pending regulatory approval.

#6. IT consultancy Seisma buys Microsoft specialist Data Addiction

Seisma, an IT consulting firm, has acquired Sydney-based Data Addiction, a leader in data and Artificial Intelligence.

Data Addiction, which was founded in Sydney in 2018 by a group of former leaders at Empired, was later acquired by Capgemini for $233 million. Data Addiction is a Microsoft gold partner for data analytics, platform, and cloud, serving clients on Microsoft Data & AI and Dynamics 365 solutions as well as Azure migrations and managed services.

Speaking about the acquisition of Data Addiction, one of the officials at Seisma stated that this purchase aligns perfectly with the company’s strategy of offering comprehensive IT solutions to its clients, and the firm looks forward to leveraging Data Addiction’s expertise to help their clientele unlock the full potential of their data and accelerate their digital transformation journey.

Closing Thoughts

Well folks, it’s been another fruitful week in the world of consulting M&A! We’ve covered a lot of ground and kept you all in the loop about the latest deals that have been making waves in the industry.

But, as always, we want to hear from you. If there are any deals that you think we may have missed, please don’t hesitate to reach out and let us know. Your feedback is always appreciated and helps us provide even more comprehensive coverage.

With that said, it’s time to wrap things up for the week. We hope you’ve enjoyed our round-up and stay tuned for more exciting news next week! Cheers!