Accenture completes Random Walk acquisition
20 July 2006 | 3683 views | 0
Accenture (NYSE: ACN) has completed its previously announced acquisition of Random Walk Computing Inc., a technology consulting firm specializing in trading system applications, risk management systems and other technologies for banks, asset managers, exchanges and other financial services institutions.
The acquisition expands Accenture's custom software integration and development capabilities for financial institutions that trade in stocks, bonds and derivative products. Founded in 1995, Random Walk has established itself as a mainstay in the Wall Street technology community.
"Accenture's acquisition of Random Walk underscores the trend toward customized vendor development within capital markets," said Harrell Smith of Celent, a financial services industry research firm. "According to Celent's recent research into spending trends and priorities among leading financial services institutions, firms are increasingly looking outside of their own organizations for customized application development. Even among firms that traditionally felt that their scale and internal IT resources gave them a competitive advantage with respect to trading technology, we see increased interest in the types of services Random Walk provides." In 2005, financial services firms spent approximately $4.4 billion on software technologies, including custom and commercial applications and in-house technology development, according to Celent.
"With Random Walk now part of Accenture, we can offer our clients more capabilities to design and build innovative custom software solutions that truly differentiate them from the competition," said Bill Cline, managing director of Accenture's Capital Market's practice. "By combining our global offshore development capabilities and consulting and outsourcing services with Random Walk's deep industry expertise and technological skills and proven development methodologies, we can continue to deliver and expand the valued services Random Walk has brought to the market for more than a decade."
Random Walk founders Joel Scotkin and Jim Lowe have joined Accenture's Financial Services operating group, along with all key members of Random Walk's leadership team and technology workforce. Terms of the transaction were not disclosed.