Move will add to systems integrator’s Industry X.0 unit
Accenture is adding to its skills in the Internet of Things (IoT) with the acquisition of Nytec, a Kirkland, Washington-based company with expertise in designing and building products and services and supporting them throughout their lifecycle.
The Lowdown: Nytec will become part of Accenture’s Industry X.0 unit, which offers organizations products and services to help them navigate their ongoing digital transformation efforts, from R&D and manufacturing to workforce and business support.
The Details: No financial details were released for the deal with Nytec, which runs a Leadership in Energy and Environmental Design (LEED) Platinum-certified product innovation center through which it provides manufacturing operation services around design, prototype development, engineering, and support. Accenture’s goal is to expand the center and make it part of the company’s Industry X.0 Innovation Network, which includes more than 20 facilities. Through those sites, Accenture helps organizations develop, prototype, deliver, and ramp up new products and services.
Nytec, founded in 1975, will add more capabilities around software platform development and engineering for IoT infrastructure and systems for highly connected environments in such industries as consumer and industrial technology, hospitality, and travel.
Among the joint customers for Accenture and Nytec is Carnival. Nytec works with the cruise-line company to develop IoT equipment, while Accenture is a partner with Carnival’s Global Experience and Innovation Team.
The Impact: IoT is helping to drive rapid changes in commercial IT and consumer technology in an increasingly mobile, connected, and decentralized world. According to Cisco Systems, there will be 500 billion connected devices, sensors, and systems worldwide by 2030. Investment firm Bain predicts that in 2021, the global IoT market will reach $520 billion.
Background: Accenture is on a buying spree, having acquired more than a dozen companies since the beginning of the year. The spree is being fueled by $1.5 billion the company set aside for M&A in hopes of rapidly building its expertise in such areas as IoT, Big Data, wireless, and the cloud.
The Buzz: “Our ambition is to become a key partner for clients wanting to transform their business through innovation that’s coming from the fusion of software, physical products, and connectivity,” said Craig McNeil, Accenture Industry X.0 lead for North America. “We’ve been building the skill set to deliver on this ambition, in part through our acquisitions of hardware engineering company Mindtribe and embedded software development firm Pillar Technology, and with Nytec we will continue to expand it.”
“Our designers, engineers, and manufacturing experts translate complex problems into compelling, simple solutions that deliver the ultimate user experience,” said Nytec CEO Rich Lerz. “Becoming part of Accenture Industry X.0 will allow our team to scale services for our clients and get access to the best brands in the world.”