Accenture sign above an entrance in Zurich, Switzerland, in November 2022 Credit: Tobias Arhelger via Shutterstock Accenture is exploring a sale of its Greater China business, in a deal that could value the unit at up to $1.5bn, the Financial Times reported on Sunday. The consulting firm has hired JPMorgan to run a strategic review of the unit, according to the Financial Times report, which cited people familiar with the matter. The review follows unsolicited interest in the business over the past year, the paper said. Accenture and JPMorgan did not immediately respond to requests for comment from Reuters, which were sent outside regular business hours.
The Greater China unit covers mainland China, Hong Kong, and Taiwan, according to Accenture’s website. Its wider Asia-Pacific business brought in about $10bn in revenue last year, the FT said. A sale would probably draw private equity groups and a small number of strategic buyers, the FT reported. Accenture could also keep a significant minority stake to give clients continuity.
However, there is no certainty that the review will lead to a deal. The FT also pointed to wider pressure on Western advisers in China. Several, including McKinsey, have scaled back there. At the same time, tighter Chinese security rules limit how much sensitive data can leave the country.
Accenture has already signalled that it is willing to sell parts of the company. At a recent investor event, chief financial officer Angie Park said it can raise money by selling assets, according to the FT. The firm has a record of “exiting businesses, offerings, countries, contracts that no longer meet our strategic or return thresholds,” Park said, according to the FT. The report comes as Accenture tries to convince investors that AI will bring it more work, not less.
Some investors fear AI could let clients bring work in-house, the FT said. In June, its shares suffered their worst one-day drop on record after a weak forecast. The stock then rose by about a fifth on October 1, after fourth-quarter results beat expectations. Revenue for the year to August rose 6.5% to $74.2bn.
For fiscal 2027, the company expects growth of 3% to 6%. At its investor day on October 14, Accenture said it plans about $8bn of acquisitions in fiscal 2027. That figure includes its deal for industrial security firm Dragos. It also aims to return at least $9.5bn to shareholders next year.
Money from a China sale could help pay for those plans, the FT said. Get the TNW newsletter ✕ Close Get the TNW newsletter Get the most important tech news in your inbox each week.
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