Market Overview

Accenture Expands Industry X.0 Capabilities with Two Acquisitions in North America

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  • Buys hardware engineering firm Mindtribe and announces intent to
    acquire embedded software company Pillar Technology
  • Boosts ability to help companies innovate smart, connected software
    and hardware products

Accenture (NYSE:ACN) has made two major moves to expand its Industry
X.0
practice. The company acquired
hardware engineering firm Mindtribe
and entered into an agreement to buy smart embedded software company Pillar
Technology
. The two acquisitions will significantly boost
Accenture's ability to help companies redefine smart connected software
and physical products as the lines blur between the physical and digital
world.

Accenture Industry X.0 helps industrial, high-tech, software,
automotive, energy and utility companies address the shift to digital
products and services, transform their engineering, manufacturing and
field operations, and digitize their enterprises.

"Products are no longer simply physical things – they are evolving to be
connected platforms that are powered by artificial intelligence, the
Internet of Things, and cloud and edge computing," said Mike Sutcliff,
group chief executive, Accenture Digital. "With our Industry X.0
capabilities, we are helping our clients create the products of the
future with the required expertise in digital technologies, software
development, product engineering, as well as user experience and product
design. These acquisitions will fuel our drive to become a leader in
developing connected products and services."

Julie Sweet, Accenture's chief executive officer, North America, added:
"Our investment in innovation is an investment in our clients. These
acquisitions follow the opening of our new Industry X.0 innovation hub
in metro Detroit, further expanding our capabilities to help companies
across a range of industries rapidly co-create, prototype and launch
connected products and services to unlock new revenue streams and
business models."

Mindtribe has a team of 40 professionals and is based in San Francisco.
It creates innovative connected hardware tightly integrated with digital
services. Having pioneered the use of agile techniques for hardware, the
team can deliver user value faster and shorten development cycles. It
has created class-leading technology products for many iconic brands and
high-tech companies. Headquartered in Columbus, Ohio, Pillar Technology
has a team of 320 people and offices in Des Moines, Iowa, Ann Arbor,
Michigan, and Palo Alto, California. It possesses more than 20 years of
experience in the rapid/agile development of high-quality and
user-friendly embedded software used in smart, connected products such
as autonomous vehicles.

Pillar Technology fuses elegant physical products with digital services
that increase the benefit for end users and offer new ways to attract
and serve customers. It has worked on reinventing the concept of
hardware products with many iconic brands and high-tech companies.

Steve Myers, CEO of Mindtribe, said, "Mindtribe has always sought to
build groundbreaking connected products and services, and we are proud
to be behind some of the world's most high-profile product successes.
Now, 20 years after the foundation of Mindtribe, the most exciting part
of our journey is still ahead of us, and we are looking forward to
moving ahead as part of the Accenture Industry X.0 team."

Bob Myers, CEO of Pillar Technology, said, "Our ambition is to provide
the best possible software -- embedded or connected – at lightning
speed. We focus on value and fast feedback loops that puts user
experience at the forefront. Joining Accenture‘s Industry X.0 practice
will allow us to bring this focus on speed-to-value to even more
clients. We're excited to be a part of how Industry X.0 will help
clients reach new heights in the U.S. and globally."

As an area that represents significant growth opportunities for clients,
Accenture is focused on strengthening its capabilities in Industry X.0
globally. For example, Accenture recently launched a new Industry
X.0 innovation hub in metro Detroit
, acquired Boston-based product
design and innovation firm Altitude,
and completed its acquisition of strategic design consultancy designaffairs.

Mindtribe's San Francisco office and team offer all interdisciplinary
skills and physical hardware engineering equipment that clients need to
build connected products from concept through production.

Pillar Technology will add a unique approach, called "The Forge," that
brings together business strategists, creatives, developers and clients
to collaborate on solving business problems in a no-constraints,
innovative environment.

More on Mindtribe

  • Mindtribe was founded in 1998. Its expertise and services include
    mechanical and electrical engineering, embedded software development,
    product realization and rapid prototyping.
  • Steve Myers and his leadership team will continue to lead Mindtribe's
    business and take on additional responsibilities for Accenture
    Industry X.0 in North America.
  • The Mindtribe team will work hand in hand with Accenture's Industry
    X.0 team and professionals from Accenture Interactive's San Francisco
    Fjord studio, which received a talent boost with Fjord's acquisition
    of design & innovation firm MATTER
    last year. Mindtribe and
    MATTER have previously collaborated on the invention of Well,
    a smart home water conservation system.

More on Pillar Technology

  • Pillar Technology was founded in 1996. It offers rapid and agile
    development and testing of enterprise-grade applications, software
    products and platforms associated with physical products, and digital
    services engineering for hardware products.
  • Upon closing, Bob Myers will continue to be responsible for the Pillar
    Technology business. In addition, he will lead Accenture Industry
    X.0's smart products & embedded solutions practice. His leadership
    team is expected to continue in their roles and support Pillar
    Technology's integration into Accenture Industry X.0.

The Mindtribe acquisition has been completed. Completion of the
acquisition of Pillar is subject to customary closing conditions.
Financial terms for both transactions were not disclosed.

About Accenture

Accenture is a leading global professional services company, providing a
broad range of services and solutions in strategy, consulting, digital,
technology and operations. Combining unmatched experience and
specialized skills across more than 40 industries and all business
functions – underpinned by the world's largest delivery network –
Accenture works at the intersection of business and technology to help
clients improve their performance and create sustainable value for their
stakeholders. With 449,000 people serving clients in more than 120
countries, Accenture drives innovation to improve the way the world
works and lives. Visit us at www.accenture.com.

Accenture Industry X.0 helps businesses master the digital reinvention
of industry when they use advanced digital technologies to transform
core operations and unlock new revenue streams and business models. We
support every aspect of our clients' multi-phase transformation
including workforce, customer experience, R&D, engineering,
manufacturing, business support and ecosystems. Visit www.accenture.com/industry-x0.

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
include, without limitation, risks that: Accenture and Pillar Technology
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 transactions with either Pillar
Technology or Mindtribe might not achieve the anticipated benefits for
Accenture; Accenture's results of operations could 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 changing 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 could have liability or
Accenture's reputation could be damaged if the company fails to protect
client and/or company data from security breaches or cyberattacks; the
markets in which Accenture operates are highly competitive, and
Accenture might not be able to compete effectively; 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; 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;
Accenture's business could be materially adversely affected if the
company incurs legal liability; Accenture's work with government clients
exposes the company to additional risks inherent in the government
contracting environment; Accenture might not be successful at
identifying, acquiring, investing in or integrating businesses, entering
into joint ventures or divesting businesses; Accenture's global delivery
capability is concentrated in India and the Philippines, which may
expose it to operational risks; as a result of Accenture's
geographically diverse operations and its growth strategy to continue
geographic expansion, the company is more susceptible to certain risks;
adverse changes to Accenture's relationships with key alliance partners
or in the business of its key alliance partners could adversely affect
the company's results of operations; if Accenture is unable to protect
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 ability to attract and
retain business and employees may depend on its reputation in the
marketplace; if Accenture is unable to manage the organizational
challenges associated with its size, the company might be unable to
achieve its business objectives; any changes to the estimates and
assumptions that Accenture makes in connection with the preparation of
its consolidated financial statements could adversely affect its
financial results; many of Accenture's contracts include payments that
link some of its fees to the attainment of performance or business
targets and/or require the company to meet specific service levels,
which could increase the variability of the company's revenues and
impact its margins; Accenture's results of operations and share price
could be adversely affected if it is unable to maintain effective
internal controls; 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; 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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