Why Accenture (ACN) Acquires Trancom’s Engineering and Operations Capabilities

  • Accenture (NYSE:ACN) recently announced that it is buying the digital engineering and operational technology capabilities of Trancom ITS. These are the details.

Accenture (NYSE:ACN) recently announced that it is buying digital engineering and operational technology capabilities from Trancom ITS, a Japanese logistics technology services provider. This acquisition will enable Accenture’s Industry X service to deliver large-scale hyper-automation solutions, which manufacturing and logistics companies in Japan are increasingly demanding to become more efficient and sustainable in their core operations. Terms of the transaction were not disclosed.

Trancom’s hyper-automation solutions help organizations quickly identify and automate many business processes and assets. And the approach relies on advanced digital technologies such as artificial intelligence (AI) and robotics.

Accenture will acquire Trancom ITS capabilities for systems integration, consulting, software development and outsourcing. And these include logistical and technological know-how and most of its customer contracts. Around 190 engineers from Trancom ITS – specializing in cloud-based logistics systems and optimizing warehouse operations with IoT and sensor technology – will join Accenture Industry X in Japan.

For example, the systems integration capabilities and logistics expertise of Trancom ITS will enable Accenture to expand its AI-based supply chain management service to more clients. And the department uses AI and predictive analytics to refine its logistics and delivery planning, automate and visualize warehouse operations, and reduce manual labor.

Trancom ITS provides technology services to its parent company Trancom and other Japanese companies in the logistics, manufacturing and information technology sectors. And its portfolio includes the development and integration of warehouse management systems and delivery management systems.

Upon closing of the agreement, Trancom ITS will continue to serve Trancom, while its other client relationships will transfer to Accenture. And Accenture and Trancom also plan to collaborate on other joint solutions that accelerate the digital transformation of Trancom and customers in the logistics and manufacturing industries.

The acquisition of Trancom ITS capabilities will mark the next big step Accenture is taking to strengthen its offering in Japan to digitize the entire engineering and manufacturing value chain. And this follows the acquisition of product lifecycle management and application lifecycle management capabilities from DI Square in Japan in August 2021.

Other recent acquisitions Accenture has made for Industry X in other markets include asset performance management consultancy TA Cook (Germany), systems integrator for Hexagon’s Infor EAM solutions Advoco (USA), international engineering consulting and services company umlaut, operations technology provider Electro 80 (Australia) and industrial robotics and automation service provider Pollux (Brazil).

Completion of the Acquisition is subject to customary closing conditions.

KEY QUOTE:

“We are seeing significant demand from customers to help them automate manual processes in factories and warehouses. By combining Trancom ITS assets with our AI and robotics capabilities, we can generate more value from these processes for customers and help them become more sustainable.

— Tatsuya Nakayabu, Senior Managing Director and Head of Accenture Industry X in Japan

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