In order to drive its data analytics and AI platform, Accenture (ACN) bought machine learning firm Kogentix yesterday. However, the financial terms of the deal weren’t disclosed.
Kogentix, which was incorporated in 2015, supports a group of around 220 big data engineers, data scientists, machine learning engineers, and software developers. The acquired firm is slated to become a part of the Accenture Applied Intelligence group, which deals with data analytics and AI technologies.
Purpose of the deal
The growing popularity of AI across the industry has allowed Accenture to strengthen its AI market. Its close peer IBM (IBM) continues to dominate the analytics space with its popular Watson AI product. Microsoft (MSFT) is also integrating its AI technology on the Azure cloud, offering better insights and saving clients costs and time.
So the Kogentix deal could help Accenture step up its AI business, providing better analysis to customers and increasing data processing speed. Kogentix offers its expertise on applications like Hadoop, Spark, and Python, which can process huge volumes of data quickly.
Other AI-based acquisitions
Accenture also bought another AI firm, Real-Time Analytics Platform, yesterday. The deal should allow the company to embed Real Time’s AI features in Accenture’s Touchless Testing Platform, driving analytics and cognitive strength. The terms of the deal weren’t disclosed.
Acquisitions continue to create incremental revenue for the company. You can see from the graph above the revenue trend over the last five quarters. Accenture’s revenue has grown at a CAGR of 5.1%.