ESR Labs will bring additional scale to Accenture’s focus on smart connected solutions and mobility services
NEW YORK & MUNICH--(BUSINESS WIRE)--Accenture (NYSE: ACN) has agreed to acquire ESR Labs, a Munich-based company that develops embedded software for leading German car brands and suppliers. The acquisition will expand Accenture’s capabilities to help its automotive clients drive greater value from software.
Embedded software is the code running on the electronic units that control a vehicle’s functions. Writing it requires a scarce set of experience and skills that the more than 130 software engineers and software architects from ESR Labs will bring to Accenture. ESR Labs also offers solutions to 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, the part of Accenture that uses digital technologies to improve how companies design, engineer and manufacture products and services, and operate industrial facilities. As such, ESR Labs will join forces with two other German acquisitions for Industry X.0, strategic design consultancy designaffairs and technology consultancy Zielpuls. Together, they will develop mobility services for carmakers as well as smart connected solutions for medical technology, industrial equipment and high-tech companies.
Andrew Smith, a managing director for Accenture Industry X.0 in Germany, said: “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.”
Frank Riemensperger, market unit lead for Accenture in Germany, said: “Bringing together ESR Labs, designaffairs and Zielpuls will go a long way in helping clients in our market tackle their digital challenges. Together, we can help them develop some of the world's most innovative and high-quality products and services.”
Wolfgang Köcher, CEO of ESR Labs, said: “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.”
ESR Labs will be the latest acquisition that Accenture has made to strengthen Industry X.0. In February, 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.
Completion of the acquisition is subject to customary closing conditions. Financial terms were not disclosed.
Accenture is a leading global professional services company, providing a broad range of services in strategy and consulting, interactive, technology and operations, with digital capabilities across all of these services. We combine unmatched experience and specialized capabilities across more than 40 industries — powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. With 505,000 people serving clients in more than 120 countries, Accenture brings continuous innovation to help clients improve their performance and create lasting value across their enterprises. Visit us at www.accenture.com.
Accenture Industry X.0 helps businesses master the digital reinvention of industry when they use advanced digital technologies to transform core operations and unlock new revenue streams and business models. We support every aspect of our clients’ multi-phase transformation, including workforce, customer experience, R&D, engineering, manufacturing, business support, and ecosystems. Visit https://www.accenture.com/us-en/services/industryx0-index.
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