M&A: Accenture Acquires True North Solutions; Reinforces Hybrid Energy Consulting Strategy
July 9, 2024 by Joe Panettieri
Global IT consulting firm Accenture has acquired True North Solutions, a consulting and industrial engineering firm that helps customers to "produce and transport energy more safely and efficiently." Financial terms were not disclosed.
The acquisition reinforces Accenture's hybrid energy strategy. On one hand, Accenture offers sustainability IT services that assist customers with carbon reduction and net-zero strategies. On the other hand, Accenture also helps customers in legacy energy markets -- including the Oil and Gas sector. In True North's case, the company often serves traditional Oil and Gas customers.
Accenture Acquires True North Solutions: Business Backgrounds
True North Solutions, founded in 2006, is based in Calgary, Alberta, Canada, and Denver, Colorado, United States. Key areas of expertise include automation, functional safety, enterprise asset management, electrical engineering, integrated completions and commissioning, industrial telecommunications networking, cybersecurity, project management, and recruitment services. Key markets served include Oil & Gas, Petrochemical, Water & Wastewater, Mining, Utilities, Power Generation, Manufacturing, Food & Beverage, Life Sciences, and other.
David Morganstern, president, Accenture Canada
Accenture, based in Dublin, Ireland, has roughly 750,000 employees worldwide. The company's focus spans IT consulting, managed IT services, sustainability services, and dozens of additional capabilities.
The True North team, which includes 95 experts across automation, instrumentation and electrical engineering, will tuck into Accenture's digital engineering and manufacturing service, Industry X.
Accenture Buys Canadian Technology, Engineering Consultancy: Executive Perspectives
In a prepared statement, Adam Foster, Accenture Canada’s Energy Portfolio leader, said: “True North Solutions brings boots-on-the-ground understanding of how to design, build and commission our clients’ critical assets and infrastructure. We are combining True North Solutions’ unique expertise with our advanced digital capabilities, such as digital thread, predictive maintenance and intelligent asset management, to improve the performance and safety of our clients’ field operations.”
Adam Foster, Energy Portfolio leader, Accenture Canada
Added David Morgenstern, president of Accenture in Canada: “In welcoming True North Solutions to our Industry X and Resources team at Accenture, we will help our clients benefit from transformative technologies such as generative and predictive AI through digitally enabled field operations. Smart operations means greater productivity and predictability, helping clients operate with increased efficiency and safety, and we’re pleased to be advancing these capabilities in the industry and in Canada.”
Concluded Blair Hanel, CEO of True North Solutions: “By joining Accenture, we’re giving our clients in North America access to Accenture’s digital leadership in areas such as cloud, data and AI, and global scale, which will help them advance their businesses. Our teams will benefit from the opportunity to grow and deepen their careers in one of the world’s most innovative, inclusive and global organizations.”
Accenture M&A Expertise
Generally speaking, Accenture acquires dozens of businesses worldwide each year. Numerous acquisitions involve energy consulting and/or energy transition capabilities.
Blair Hanel, CEO, True North Solutions
Example acquisitions, investments and partnerships include:
February 2024:Accenture acquired Insight Sourcing, a provider of strategic sourcing and procurement services -- particularly for private equity customers. The deal also included Insight Energy -- an energy procurement and management business.
IT Consulting and Generative AI: Recent Business and Revenue Performance
Despite the recent hype about generative AI and associated automation opportunities, the global IT consulting market faces some economic headwinds.
In Accenture's case, revenue was $16.47 billion in Q3 of fiscal 2024, down 1% from Q3 of fiscal 2023. Dig a little deeper into the Q3 fiscal 2024 results, and Accenture said consulting revenues dipped 3% while managed services revenues rose 2%.
On the AI front, Accenture has booked $2 billion in generative AI sales year-to-date and $500 million in associated revenue year-to-date, the company said.
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