Accenture buys 200-strong SAP and cloud consultancy Zag

07 October 2020 3 min. read
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Accenture has strengthened its capacity to drive digital transformation across the Australia & New Zealand (ANZ) market through the acquisition of Wellington-headquartered SAP and cloud consultancy Zag.

Zag brings 200 professionals spread across offices in Wellington, Auckland, Sydney and Melbourne to Accenture’s ANZ outfit. According to the Australian Financial Review (AFR), Accenture has shelled out $45 million to close the acquisition, although no official statement has been made on the financial terms.

In New Zealand, Zag is among the go to partners for SAP solutions, supporting businesses with cloud migration and integration of SAP’s cutting edge product suite. The firm supports its clients at every stage of the process, from consulting and development all the way through to testing.

Zag was founded in 1996, and has since “grown from an idea to a thriving business that has helped over 100 organisations to become stronger, safer and more prosperous through the best possible use of technology, tailored to their specifications,” said Zag CEO Nick Mulcahy. Accenture will now look to make the most of the Zag’s scale and reputation, amid wider efforts to bolster its cloud and digital transformation services.

Accenture buys 200-strong SAP and cloud consultancy Zag

Last month, the digital services and consulting firm launched a global Cloud First practice – endowed with an investment of $3 billion to facilitate the transition to cloud-based working worldwide. The freshly integrated Zag team will help channel these resources on the ground, while also bringing a little something extra to the table, according to Accenture’s ANZ Technology Lead Scott Hahn.

“Zag’s experience in delivering cloud and SAP solutions for a wide range of complex businesses will be pivotal to the expansion of Accenture’s local technology offerings. Their extensive expertise and knowledge further deepen our networks and capabilities to meet the anticipated growth in demand for SAP and cloud services and we are delighted to welcome them to the team,” he said.

Balancing investments

The addition of Zag is the latest in a string of Accenture acquisitions in ANZ recently, particularly over the course of last year. Amid a global pandemic and a fledgling economy, 2020 has undoubtedly been challenging – with Accenture's growth rate plummeting to 1% in February – and the firm has had to scale back on spending significantly. In September, the firm announced plans to cut up to 250 of its Australian headcount.

That being said, investments have certainly not been halted, as the firm continues to channel funds into high impact areas. Just a week ago, Accenture announced the launch of a new technology hub in Adelaide, focused on defence and aerospace innovation. Zag’s addition signals the value the firm’s commitment to remaining a market leaders in the SAP consulting space, and Mulcahy expressed his excitement for the news combined offering.

“The combination of Accenture and Zag is a great opportunity for our clients and teams, and we look forward to offering an unrivalled SAP offering,” he said. Upon closing of the deal, Mulcahy and three other Zag executives will take on the roles of Managing Directors (the equivalent of partner) at Accenture.

Globally, Accenture is one of SAP’s premier partners. The firm has some 47,000 certified SAP consultants and technicians worldwide, and has bagged over 50 awards for SAP excellence in the past five years.