Accenture Completes Acquisition of ASM Research
Expands its U.S. Defense and Federal Health Business
ARLINGTON, Va.--(BUSINESS WIRE)-- In a move to strategically expand its U.S. defense business in the growing military health market, Accenture Federal Services (AFS) has completed its acquisition of ASM Research. ASM Research, an Accenture Federal Services Company, is a wholly owned subsidiary of AFS. Terms of the transaction were not disclosed.
With the acquisition, Accenture expands the offerings and value it provides to U.S. Department of Defense (DoD) and Veterans Affairs (VA), delivering compelling clinical benefits and business solutions to federal defense and military health agencies experiencing a once-in-a-generation modernization. These clients will benefit from deep mission knowledge, experience in providing electronic health records, healthcare integration, interoperability and commercial best practices that ASM, together with AFS, are uniquely qualified to address.
"Transforming healthcare at the federal level requires close alignment with the private sector, as much of the healthcare for active duty and retired service members comes from private companies," said Jim Traficant, president of ASM Research and a managing director at Accenture Federal Services. "Our combined expertise in technology, healthcare, systems infrastructure, and mission knowledge uniquely positions us to meet the government's 'healthcare readiness' challenge."
ASM Research, an Accenture Federal Services Company, is headquartered in Fairfax, Va., and has more than three decades of government experience and expertise in healthcare IT, information solutions and services, data analytics, cloud, data warehousing, human capital management and benefit solutions and agile software development.
Accenture Federal Services is a U.S. company, with offices in Arlington, Va., and is a wholly owned subsidiary of Accenture LLP. Accenture's federal business serves every cabinet-level department and 20 of the largest federal organizations with clients at defense, intelligence, public safety and civilian agencies.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 266,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world's most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its homepage is www.accenture.com.
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 include, without limitation, risks that: the transaction might not achieve the anticipated benefits for Accenture and ASM Research; Accenture's and ASM Research's results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on Accenture's and ASM Research's clients' businesses and levels of business activity; Accenture's and ASM Research's businesses depend on generating and maintaining ongoing, profitable client demand for Accenture's and ASM Research's services and solutions, and a significant reduction in such demand could materially affect Accenture's or ASM Research's results of operations; if Accenture or ASM Research 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, Accenture's or ASM Research's business, the utilization rate of Accenture's or ASM Research's professionals and Accenture's or ASM Research's results of operations may be materially adversely affected; the markets in which Accenture and ASM Research compete are highly competitive, and Accenture and ASM Research might not be able to compete effectively; Accenture or ASM Research could have liability or Accenture's or ASM Research's reputation could be damaged if Accenture or ASM Research fails to protect client and/or company data or information systems as obligated by law or contract or if Accenture's or ASM Research's information systems are breached; Accenture's and ASM Research's results of operations and ability to grow could be materially negatively affected if Accenture and ASM Research cannot adapt and expand their services and solutions in response to ongoing changes in technology and offerings by new entrants; as a result of Accenture's geographically diverse operations and its growth strategy to continue geographic expansion, Accenture is more susceptible to certain risks; Accenture's Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; Accenture's and ASM Research's results of operations could materially suffer if Accenture and ASM Research are not able to obtain sufficient pricing to enable them to meet their profitability expectations; if Accenture's pricing estimates do not accurately anticipate the cost, risk and complexity of Accenture performing its work or third parties upon whom it relies do not meet their commitments, then Accenture's contracts could have delivery inefficiencies and be unprofitable; Accenture's work with government clients exposes Accenture to additional risks inherent in the government contracting environment; Accenture's and ASM Research's businesses could be materially adversely affected if Accenture or ASM Research incurs legal liability in connection with providing its services and solutions; Accenture's and ASM Research's results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; Accenture's alliance relationships may not be successful or may change, which could adversely affect Accenture's results of operations; outsourcing services and the continued expansion of Accenture's other services and solutions into new areas subject Accenture to different operational risks than its consulting and systems integration services; Accenture's and ASM Research's services or solutions could infringe upon the intellectual property rights of others or Accenture and ASM Research might lose their ability to utilize the intellectual property of others; Accenture and ASM Research have only a limited ability to protect their intellectual property rights, which may be important to Accenture's or ASM Research's success; Accenture's and ASM Research's ability to attract and retain business and employees may depend on their reputations in the marketplace; Accenture might not be successful at identifying, acquiring or integrating businesses or entering into joint ventures; Accenture's profitability could suffer if its cost-management strategies are unsuccessful, and Accenture may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; many of Accenture's contracts include payments that link some of its fees to the attainment of performance or business targets and/or require Accenture to meet specific service levels, which could increase the variability of Accenture's revenues and impact its margins; changes in Accenture's or ASM Research's level of taxes, and audits, investigations and tax proceedings, or changes in Accenture's treatment as an Irish company, could have a material adverse effect on Accenture's or ASM Research's results of operations and financial condition; if Accenture is unable to manage the organizational challenges associated with its size, Accenture might be unable to achieve its business objectives; if Accenture or ASM Research is unable to collect its receivables or unbilled services, Accenture's or ASM Research's results of operations, financial condition and cash flows could be adversely affected; Accenture's and ASM Research's share price and results of operations could fluctuate and be difficult to predict; Accenture's results of operations and Accenture's share price could be adversely affected if Accenture or ASM Research 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 by Accenture. Statements in this news release speak only as of the date they were made, and Accenture and ASM Research undertake 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 or ASM Research's expectations.
Joanne Veto, + 703 947 2590 / + 703 963 4212 (mobile)
KEYWORDS: United States North America Virginia
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