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Accenture Acquires Digital Engineering and OT Capabilities From Trancom ITS

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attends WIRED25 Work: Inside San Francisco’s Most Innovative Workplaces on October 12, 2018 in San Francisco, California.

Accenture has acquired digital engineering and operational technology capabilities from Trancom ITS, a Japanese logistics technology services provider. Financial terms of the deal were not disclosed.

This is technology M&A deal number 306 that ChannelE2E has covered so far in 2022.

The Trancom ITS deal is part of a larger M&A strategy. Indeed, Accenture plans to spend roughly $4 billion on acquisitions during the current fiscal year. Roughly $1.8 billion of that $4 billion M&A budget was spent on 21 acquisitions during the first half of Accenture’s fiscal year 2022, CFO KC McClure indicated during an earnings call on March 17, 2022.

Accenture Acquires Japanese Logistics Company Trancom ITS: Here's Why

Accenture will acquire systems integration, consulting, software development and outsourcing capabilities from Trancom ITS, including logistics and technological know-how and most of its client contracts, the buyer said.

Approximately 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.

Trancom ITS is a subsidiary of major Japanese logistics company Trancom. It provides development and integration of warehouse management systems and delivery management systems to its parent company and to other Japanese companies in the logistics, manufacturing and information technology industries. After the acquisition, Trancom ITS will continue to service Trancom, whereas its other client relationships will be transferred to Accenture, the companies said.

The Trancom ITS deal is part of a larger M&A strategy. Indeed, Accenture plans to spend roughly $4 billion on acquisitions during the current fiscal year. Roughly $1.8 billion of that $4 billion M&A budget was spent on 21 acquisitions during the first half of Accenture’s fiscal year 2022, CFO KC McClure indicated during an earnings call on March 17, 2022.

Tatsuya Nakayabu, Accenture
Tatsuya Nakayabu, senior managing director and lead, Accenture Industry X Japan

This acquisition will enable Accenture’s Industry X service to offer hyper-automation solutions at scale, which manufacturing and logistics companies in Japan are increasingly demanding to become more efficient and sustainable in their core operations, Accenture said in a statement. Accenture added that hyper-automation solutions help organizations rapidly identify and automate many business processes and assets and this approach relies on advanced digital technologies such as artificial intelligence (AI) and robotics.

Tatsuya Nakayabu, senior managing director and lead for Accenture Industry X in Japan, said of the acquisition:

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

Accenture's Industry X M&A Strategy

Accenture typically acquires dozens of companies each year. Many of the deals focus on cloud services, cybersecurity, digital transformation, data and analytics, managed services, and ad agencies. You can see all Accenture's acquisitions ChannelE2E has tracked here.

Recent acquisitions Accenture has made for Industry X in other markets include asset performance management consultancy T.A. Cook in Germany, systems integrator for Hexagon’s Infor EAM solutions Advoco in the U.S., international engineering consulting and services firm umlaut, operations technology provider Electro 80 in Australia and industrial robotics and automation services provider Pollux in Brazil.