Excelmax deal could boost Accenture sales, expand edge innovation: Baird

Accenture’s (NYSE:ACN) deal to acquire India-based semiconductor design services provider Excelmax could be accretive revenue and improve its technological prowess, investment firm Baird said.

The deal, which could add roughly 0.1% to annualized revenue, is also likely to add to “key areas” for Accenture, including emulation, automotive, physical design, analog, logic and design and verification.

“The integration will expand ACN’s ability to accelerate edge computing innovation (a key component of enabling edge AI deployments),” analyst David Konig wrote in an investor note. Konig has a Neutral rating and $345 price target on Accenture, implying roughly 20% upside from current levels.

While terms of the deal were not disclosed, Excelmax is believed to have roughly 450 employees. Assuming roughly $150,000 in revenue per employee, that could be a boost of around $65M in annual revenue, Konig added.

Accenture shares were down fractionally in afternoon trading on Tuesday.