NEW YORK; July 19, 2007 — Accenture (NYSE: ACN) has agreed to acquire George Group, a privately held consulting firm specializing in helping companies and governments enhance their performance through strategic process improvements, accelerated innovation and streamlined operations.
The acquisition will expand and enhance Accenture’s ability to help clients become high-performance businesses through the addition of George Group’s specialized expertise in process improvement techniques including Lean Six Sigma, which combines process improvement methodology with efficient process discipline to reduce delivery times, lower costs and increase customer satisfaction. Terms of the agreement were not disclosed.
George Group serves Fortune 500 companies and the government sector using, in addition to Lean Six Sigma, techniques such as Fast Innovation, which provides companies with methods and processes to accelerate and sustain innovation, and Conquering Complexity, which helps companies measure and reduce the impact of complexity within their organizations.
"Both Accenture and George Group share a common vision of partnering with clients to execute strategies that help them achieve high performance. The acquisition is a great strategic fit for both parties and reflects our commitment to grow our management consulting practice and build our expertise in this vital sector," said Mark Foster, Accenture’s group chief executive–Management Consulting & Integrated Markets. "We have identified the areas of process excellence and next-generation process re-engineering as important elements of our plan for growth, and the addition of George Group’s talented professionals, specialized techniques and expertise, and thought leadership will significantly expand our capabilities in these areas."
James Works, president and CEO of George Group, said, "This is an ideal fit for our clients and consultants. Joining forces with Accenture allows us to extend and deliver our unique and differentiated capabilities to an even broader market, enabling us to offer our clients a full complement of consulting services, industry knowledge and expertise."
Mike George, founder and chairman of George Group, said, "Accenture and George Group both share a culture and commitment of delivering value to clients, and we’re excited by the benefits that the combined talents and resources of our organizations will provide."
The acquisition is subject to regulatory and other customary approvals and is expected to close within 60 days.
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 158,000 people in 49 countries, the company generated net revenues of US$16.65 billion for the fiscal year ended Aug. 31, 2006. Its home page is www.accenture.com.
About George Group Consulting
George Group Consulting (www.georgegroup.com) works with Fortune 500 companies and government organizations to develop breakthrough insights that unify strategy and execution, thereby creating lasting shareholder value. The undisputed leader in Lean Six Sigma, the George Group has supported more global Lean Six Sigma operations engagements than any other consulting firm. The firm’s proprietary Fast Innovation approach provides clients with the strategic and operational framework and tools to accelerate innovation and drive sustained organic growth. George Group is also the recognized authority in the development and deployment of strategies for Conquering Complexity of product and service offerings.
George Group is headquartered in Dallas, Texas, with teams of consultants based locally around the world to provide services to clients in more than 54 countries.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: Accenture and the George Group will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to receive requisite regulatory approvals and comply with closing conditions; the transaction might not achieve the anticipated benefits for Accenture; our business could be negatively affected if we cannot expand and develop our services and solutions in response to changes in technology and client demand; the management consulting, systems integration and technology and outsourcing markets are highly competitive and we might not be able to compete effectively; our business could be negatively affected by economic and political conditions and the effects of these conditions on our clients’ business and levels of business activity; our work with government clients exposes us to additional risks in the government contracting process; clients may not be satisfied with our services; our business could be negatively affected by legal liability that results from our providing solutions or services; our results could be adversely affected if our clients terminate their contracts with us on short notice; our outsourcing services subject us to operational and financial risk; liabilities could arise if our subcontractors or other third parties cannot deliver their project contributions on time or at all; our results of operations may be adversely affected by the type and level of technology spending by our clients; our profitability may suffer if we are not able to maintain favorable pricing rates and utilization rates, if we cannot control our costs, or if we cannot anticipate the cost and complexity of performing our work; our global operations are subject to complex risks, some of which might be beyond our control; our growth and our ability to compete may be adversely affected if we cannot attract, retain and motivate our employees or efficiently utilize their skills, including those personnel currently employed by the George Group; our business may be adversely affected if we cannot manage the organizational challenges associated with the size and expansion of our company; as well as the risks, uncertainties and other factors discussed under the "Risk Factors" heading in our most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this press release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.