Accenture on Thursday acquired Procurian, a procurement business process player, for $375 million.
Procurian, based in King of Prussia, PA, has locations in the U.S., India, U.K, Czech Republic, China and Brazil as well as 780 employees. Procurian is a subsidiary of ICG Accenture said the deal is expected to close at the end of 2013.
At the SpendMatters blog, Pierre Mitchell and Jason Busch said the deal "will certainly create the juggernaut in procurement BPO in terms of category expertise with, by our own analysis, over 1,000 category-centric full time employees and subject matter experts.
According to Wells Fargo and disclosures from ICG Group, Procurian's revenue for the last 12 months was about $142.6 million. Top clients for Procurian were Hertz and Kimberly Clark.
Wells Fargo analyst Ed Caso said in a research note:
Accenture continues its strategy of using its significant cash balance ($5.7B as of August 31, 2013) to make generally tuck-in acquisitions that add to its offerings or fill-out existing capabilities. While Accenture’s long-standing goal has been to deploy up to 15% of operating cash flow annually for acquisitions, the company has been increasingly active in M&A of late, in our view, which suggests to us that Accenture may view acquisitions more favorably than it has historically in the still-challenged global growth environment.