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Accenture Acquires Automobile Embedded Software Specialist ESR Labs

The list of Accenture acquisitions continues to grow. The latest deal involves the multinational professional services company buying ESR Labs, a Munich-based firm that develops embedded software for car brands and suppliers. Financial terms of the deal were not disclosed.

This is M&A deal Number 146 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.

This particular deal involves embedded software -- the code running on the electronic units that control a vehicle’s functions.

Accenture's Embedded Software Interests

Finding experts capable of writing such code can be difficult, which is part of what attracted Accenture to the deal. More than 130 ESR Labs software engineers and software architects will move to Accenture.

ESR Labs also offers solutions that can update the code remotely, helps clients develop connected car and mobility services, such as car-sharing, and conducts research into autonomous driving technology.

ESR Labs will join Accenture Industry X.0, a team that helps customers design, engineer and manufacture products and services, and operate industrial facilities. Accenture says ESR Labs will be joined with two other German acquisitions, strategic design consultancy designaffairs and technology consultancy Zielpuls. The combined group will develop mobility services for carmakers and smart connected solutions for medical technology, industrial equipment and high-tech companies, Accenture said.

Accenture Buys ESR Labs: Executive Perspectives

Andrew Smith, Managing Director for Accenture Industry X.0 in Germany
Andrew Smith, Managing Director for Accenture Industry X.0 in Germany

Andrew Smith, a managing director for Accenture Industry X.0 in Germany, commented:

“Manufacturing companies need to put software at the core of their business. They also need to adopt and nurture a technology company-like ‘pure developer culture.’ ESR Labs will put us in a great position to help our clients accelerate their plans to do just this.”

Axel Schmidt, a senior managing director and Accenture’s global automotive lead, added:

“The automotive industry is at a tipping point. Globally, car sales are declining. Customers are demanding more convenient and customized mobility services. Whoever meets these demands best, will win mobility in the future. With ESR Labs, we can help our clients in the automotive sector embrace and implement new technologies much faster.”

Wolfgang Köcher, CEO of ESR Labs, concluded:

“We’re excited to become a part of Accenture Industry X.0, which will allow us to create groundbreaking technology solution for clients faster than ever. Accenture’s truly global organization will also offer new opportunities to our people.”

Accenture Strengthens Industry X.0 Business

Accenture has been making big moves to bolster its Industry X.0 business. In February 2020, it bought VanBerlo, a Dutch product design and innovation agency. In 2019, it acquired US product innovation and engineering company Nytec and UK innovation firm Happen. In 2018, it bought US embedded software specialist Pillar Technology and US hardware engineering firm Mindtribe.

Accenture Acquisitions List: has been snapping up companies at an impressive rate since announcing its roughly $1.5 billion acquisition war chest. A complete list of Accenture acquisitions is here.