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Accenture to Acquire Capabilities from Trancom ITS to Offer Hyper-Automation to Manufacturing and Logistics Clients

Accenture (NSE: ACN) has agreed to acquire digital engineering and operational technology capabilities from Trancom ITS, a Japanese logistics technology services provider. The 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. Terms of the transaction were not disclosed.

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Accenture will acquire digital engineering and operational technology capabilities from Trancom ITS in Japan to offer hyper-automation solutions. (Photo: Business Wire)

Accenture will acquire digital engineering and operational technology capabilities from Trancom ITS in Japan to offer hyper-automation solutions. (Photo: Business Wire)

Hyper-automation solutions help organizations rapidly identify and automate many business processes and assets. The approach relies on advanced digital technologies such as artificial intelligence (AI) and robotics.

Accenture will acquire capabilities from Trancom ITS for systems integration, consulting, software development and outsourcing. These include logistics and technological know-how and most of its client contracts. Approximately 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.

“We’re seeing significant demand from clients to help them automate manual processes in factories and warehouses,” said Tatsuya Nakayabu, senior managing director and lead for Accenture Industry X in Japan. “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.”

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

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

Upon close of the deal, Trancom ITS will continue to service Trancom, whereas its other client relationships will be transferred to Accenture.

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

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).

Completion of the acquisition is subject to customary closing conditions.

About Accenture

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 699,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at accenture.com.

Accenture Industry X embeds intelligence in how clients run factories and plants, as well as design and engineer connected products and services—making manufacturing and operations more efficient, effective and safe; enabling companies to transform how they make things, and the things they make, for sustainable growth.

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 risks include, without limitation, risks that: Accenture and Trancom ITS 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 transaction might not achieve the anticipated benefits for Accenture; the COVID-19 pandemic has impacted Accenture’s business and operations, and the extent to which it will continue to do so and its impact on the company’s future financial results are uncertain; Accenture’s results of operations have been, and may in the future 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 evolving 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 faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture does not successfully manage and develop its relationships with key alliance partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; 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 or fail to satisfy certain agreed-upon targets or specific service levels; 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; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; 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; as a result of Accenture’s geographically diverse operations and its growth strategy to continue to expand in its key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce 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 results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; 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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