Accenture NZ charges past $200M revenue mark after Zag buyout

Accenture NZ charges past $200M revenue mark after Zag buyout

Supercharged Accenture NZ makes hay after key Zag acquisition.

Nick Mulcahy (Accenture NZ managing director)

Nick Mulcahy (Accenture NZ managing director)

Credit: Supplied

Accenture NZ cracked $200 million in revenue for the year to 31 August 2021, up from $120.8 million in 2021 and $66.7 million in 2020.

Pre-tax profit lifted from $2.9 million to $7 million off $202.1 million in revenue after nearly a full year of owning SAP specialist Zag, which it bought effective of 5 October 2020.

The Australian Financial Review reported the deal to be valued at A$45 million, however, Accenture NZ's 2021 accounts indicate the price paid was a shade lower at NZ$39.8 million, including $20 million of goodwill.

Zag's primary focus was on providing SAP consulting, development, support, testing and cloud migration services.

Employee expenses at Accenture NZ increased from $53.2 million to $82.6 million during the 2022 financial year while purchases of consulting services also increased from $31.7 million to $56 million.

Incomes taxes increased, from $610,000 in 2021 to $4.1 million, leaving a net profit of $2.9 million, up from $2.3 million.

The vast bulk of Accenture NZ's revenues came from consulting, however resale revenues increased from $1.6 million to $5.1 million.

Accenture NZ's consulting and outsourcing revenues both grew strongly: consulting from $102.7 million to $160.7 million, and outsourcing from $10.3 million to $25.4 million.

Last September, Accenture NZ also launched a dedicated local Microsoft practice ahead of the opening of a new local Microsoft datacentre region.

“This is a big development for us and, indeed, technology consulting services in New Zealand," said Accenture's then head of technology for New Zealand, Nick Mulcahy, who is now managing director.

New Zealand organisations would benefit from Accenture's global expertise and strategic partnership with Microsoft as well as the success of Accenture’s Australian Microsoft business group, he said. 

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Tags accentureZagSoltiansSAP consulting



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