Australian Oracle consultancy joins Accenture in $31 million deal
PrimeQ, one of Australia’s and New Zealand’s leading Oracle consultancies, has joined consulting and technology giant Accenture in a deal worth $31 million. The deal builds on two Oracle-based acquisitions closed in recent months in the US and UK, and positions Accenture as the largest Oracle cloud system integrator across the region.
From its base in Adelaide, Australia, PrimeQ has rapidly ascended the Oracle scene since being founded in 2016. In its last financial year (to June 30 2018), the IT consulting firm recorded a revenue of $28.2 million, up from only $9 million the year before. The company has benefitted from booming markets for digital transformation services and cloud transitions, as well as from a strongly growing client base on the back of its track record.
PrimeQ specialises in Oracle SaaS Cloud enterprise resource planning, with a focus on transportation management, warehouse management and Customer relationship management. The firm offers its services to clients across a range of sectors, including government, health, financial services, consumer goods and retail. In 2017 and 2018, PrimeQ was awarded the Oracle Specialised Partner of the Year awards for ERP Cloud in Australia and New Zealand, and both years the digital specialist also managed to scoop Oracle awards at an Asia-Pacific level.
The Adelaide-based company decided to join Accenture as part of its ambition to become “a powerhouse for Oracle Cloud services” across Australia and New Zealand, said Andrew McAdams, who previously worked for Deloitte and Red Rock Consulting before establishing PrimeQ. “We are very pleases to join Accenture as it will help create good outcomes for our customers, our people and our shareholders,” he said.
Elaborating on the benefits for the firm’s clients, McAdams stated: “Together we will be able to provide unrivalled Oracle services and enable our clients to accelerate their digital transformation.”
Demand for digital and technology consulting services is at its highest point in years, according to a recent report by an analyst firm, with the segment now accounting for roughly a quarter of Australia’s $5 billion consulting industry. Propositions that are most in-demand include data & analytics, migrations to cloud-based working and robotics process automation. Meanwhile, Australia’s digital journey is assessed to be further progressed than the global average, meaning that digital spending is forecasted to continue its stellar growth path in the coming year.
Commenting on the deal, James Madigan, who leads Accenture’s Oracle business in Australia and New Zealand, remarked “PrimeQ has extensive experience implementing Oracle SaaS Cloud solutions, which complements Accenture’s credentials across the Oracle Cloud portfolio. They are a highly valued Oracle ecosystem partner, bringing an impressive track record and top talent that will help drive significant results for our clients.”
The deal also sees the team formerly known as CRMNow join Accenture. In December 2017, PrimeQ acquired the fellow local Oracle partner as part of its plan for growth in the local cloud marketplace. Having orchestrated an aggressive buy-and-build strategy early 2018, which was supposed to be funded by a public listing, after the IPO failed to materialise the consultancy instead set its sights on joining a larger player. CRMNow’s former offices in Sydney and Melbourne and PrimeQ’s Adelaide headquarter will all be integrated into Accenture’s footprint.
For Accenture, the Australian transaction marks its third in the Oracle space in the past twelve months. In October last year, the firm bought DAZ Systems, adding some 300 professionals to its Oracle Business Group, while in May 2018, Accenture purchased Certus Solutions, in a deal that bolstered its capabilities in the UK and Ireland.
