Consulting M&A Weekly Round-up (3rd to 9th March, 2024)

Welcome back to another weekly round-up of consulting M&A news from around the globe. We have lots to talk about since there have been some very interesting developments in the week gone by. Big firms such as McKinsey, Accenture, and Capgemini have made some important purchases. But that is not all, there are a few more deals as well.

So, without further delays, let us dive straight in!

#1. McKinsey buys Houston-based Strategic Estimating Systems

McKinsey & Company has successfully acquired Strategic Estimating Systems (SES), a Houston-based consultancy specializing in cost estimation services for the oil and gas sector.

Established in 2005, SES is renowned for its provision of economic evaluation solutions and cost estimation services across various stages such as feasibility, frontend engineering & design (FEED), engineering-procurement-construction (EPC), and plant turnaround. With a workforce of 17 employees as listed on LinkedIn, SES collaborates with owner-operators and EPC companies involved in downstream, midstream, and upstream project execution, as well as the development of process plants.

McKinsey's strategic acquisition of this boutique firm is intended to enhance its ability to guide clients through the green energy transition. The assimilation of SES's industry benchmarks is expected to empower McKinsey's capital analytics team, enabling them to furnish more precise and rapid capital cost estimates, as highlighted in the firm's official press release.

#2. Accenture boosts AI learning offering with Udacity deal

Accenture is set to acquire Udacity and simultaneously introduce Accenture LearnVantage, a learning platform designed to enhance digital skills in response to the increasing demand for technology and generative AI services.

Established in 2011, Udacity, a US-based company, is committed to fostering "digital talent at scale," as outlined in its online mission statement. The organization addresses the worldwide talent shortages in digital skills that businesses assert are hampering growth, productivity, and innovation. Udacity offers a curriculum that includes personalized mentor support, focusing on highly sought-after competencies.

Kai Roemmelt, CEO of Udacity, expressed excitement about the collaboration with Accenture, stating, "As we unite with Accenture, we are thrilled to embark on the next chapter of our journey. Together, our commitment is to deliver impactful and cutting-edge tech education that empowers individuals and organizations to unlock their potential. This, coupled with Accenture's world-class expertise and global footprint, positions us to reach an even larger audience and amplify our impact, empowering millions to thrive in the digital economy."

This strategic move forms a pivotal element of Accenture's newly introduced LearnVantage offering. The company is committed to investing $1 billion in Accenture LearnVantage over the next three years, with the acquisition of Udacity playing a crucial role in expanding and scaling the service for clients. This development provides clients with access to Accenture's extensive experience in learning and training, addressing the increasing demand for technology skills, including generative AI.

#3. Capgemini acquires Unity's digital twin advisory arm

Capgemini, a leading French management and technology consulting firm, has announced its acquisition of the digital twin professional services division from Unity Technologies, a San Francisco-based video game engine developer.

Over the past five years, Unity's digital twin consulting team has collaborated with companies across various industries to create real-time 3D solutions, emphasizing the industrial application of digital twins.

This strategic move involves integrating Unity's digital twin consulting team into Capgemini, forming one of the world's largest teams of Unity enterprise developers. In a press release, Capgemini highlighted that this acquisition will significantly enhance its capability to assist clients with real-time 3D solutions, fostering the creation and expansion of immersive experiences.

With this acquisition, Capgemini aims to broaden its offering of high-demand solutions across diverse sectors such as aerospace, automotive, healthcare, manufacturing, energy, and retail. These solutions encompass:

-     Simulation: Utilizing advanced modeling techniques to create a digital representation of assets, simulating future scenarios and providing valuable insights.

-     Human-Machine Interfaces: Developing interactive experiences within vehicles, on meters, and on additional screens.

-     Immersive Training: Leveraging interactive 3D or augmented/virtual reality to enhance knowledge transfer and training experiences.

#4. Melbourne martech consultancy The Lumery joins Accenture Song

After a series of recent regional acquisitions, The Lumery, a Melbourne-based martech consultancy, has officially become part of Accenture Song's marketing practice.

Established in 2017 in Melbourne, with additional offices in Sydney and Bengaluru, The Lumery specializes in providing advisory and tech implementation services to clients in various sectors, including consumer, retail, financial services, public, and resources. Their expertise spans areas such as CX, CRM, data and insights, and marketing operations.

This strategic acquisition marks a significant expansion for Accenture Song, introducing an additional 80 skilled professionals to its team in Australia and India, including Lumery's co-founder and CEO, Rajan Kumar.

Kumar expressed his enthusiasm, stating, "Joining Accenture Song is a monumental step in our journey forward as we scale our expertise globally and together help more businesses connect with their customers and drive tangible business outcomes."

#5. Norda Stelo acquires mining specialist InnovExplo

Quebec City-based engineering consultancy, Norda Stelo, has announced its acquisition of InnovExplo, a Val-d’Or-based consultancy specializing in geology and mining engineering.

Established in 2003, InnovExplo boasts a team of 34 professionals spread across offices in Val-d’Or, Longueuil, and Quebec City. The company's engineers, geologists, and technicians are recognized for delivering comprehensive technical reports and studies to support the development of mining projects, both within Canada and internationally.

The strategic move by Norda Stelo to acquire InnovExplo aligns with its broader goal of offering services spanning the entire value chain of critical, strategic, and precious metals, along with industrial minerals. This acquisition positions Norda Stelo to undertake large-scale mining projects, expand its market reach, and provide end-to-end solutions throughout the entire project lifecycle.

#6. Global player ERM purchases The Big Middle and The Big Zero

Established in 2022, The Big Middle and The Big Zero, cloud and ESG sister consultancies based in Adelaide, have recently been acquired by the sustainability firm ERM.

True to its name, The Big Middle was founded with the goal of serving middle-market clients, specifically those with revenues ranging from $100 million to $1 billion, as outlined by its founders. The consultancy offers a range of services, including consulting, implementation, and support, with a primary focus on Oracle and Salesforce products.

On the other hand, The Big Zero leverages the firm's expertise in Salesforce and enterprise systems, concentrating on decarbonization and ESG accounting.

Expressing enthusiasm about the merger, Andrew McAdams, the co-founder and CEO of The Big Middle, who has now assumed the role of a partner at ERM, shared, "We are pleased to join ERM and bring our expertise to a company with tremendous purpose." Greg Taylor, co-founder, and COO of The Big Middle has also joined ERM as a partner.

Thomas Achhorner, ERM's global digital products & data analytics representative, highlighted the strategic significance of acquiring The Big Zero. He explained, "Through the acquisition of The Big Zero, we can enable clients to better track and seamlessly integrate environmental data into their organization.”

He further stated, “This encompasses Scope 1, 2, and 3 carbon emissions, energy usage, as well as waste and water management from various sources." ERM also acknowledged the valuable system implementation experience brought by The Big Middle to the collaboration.

#7. MNP acquires two Vancouver-based HR consulting firms

MNP, a nationally recognized mid-market accounting and consulting firm, has successfully completed the acquisition of two prominent human resources consulting firms based in Vancouver: Clear Choice HR Consulting and The Jouta Performance Group.

Established in 2020, Clear Choice specializes in executive search and professional recruitment services, catering to clients nationwide. The boutique firm boasts a team of five employees, as indicated on its official website.

With its founding year dating back to 2006, Jouta, encompassing approximately 10 employees, is dedicated to offering outsourced HR strategy and services, along with corporate and personal coaching.

As part of these strategic acquisitions, a total of around 15 team members will seamlessly integrate into MNP's HR consulting practice. Notably, AJ Beaudry, the founder and managing partner of Clear Choice, and Cori Maedel, the founder and CEO of Jouta, will assume pivotal roles as partners within MNP.

Closing Thoughts

That’s it for this week! Thank you to each and everyone of you who joined us for this round-up of consulting M&A news. If we missed out on any deals, then please write to us and make it known. We will be back again next week for more consulting M&A news. So until next time, see ya!