Accenture Acquires Epylon

Technology consultant Accenture on Monday announced it has acquired Epylon Corp., a provider of online procurement solutions for government and education institutions. With the acquisition, Epylon will be wholly owned by Accenture and will be an Accenture affiliate company operating under the Epylon name.

The announcement comes less than a week after Accenture disclosed it would reduce its global workforce by 1,500 employees. But, according to an Accenture official, the staff reduction will not affect any Epylon employees.

Accenture finalized the acquisition just before the consulting giant’s IPO last month. Accenture partner Jay Mohr will join Epylon as Acting CEO.

Through the venture capital unit of Accenture – Accenture Technology Ventures – the company was an early investor in Epylon. “We saw great potential for the company,” Mohr said. “We are pleased that Epylon’s working relationship with Accenture grew to the point where this acquisition could be seamless. Epylon will provide Accenture with software its clients need to make transformational business changes in their purchasing programs.”

Accenture plans to build on Epylon’s existing eProcurement program, a service Epylon offers to government and education institutions to help them streamline their purchasing procedures. According to David E. Wilkins, Accenture government partner for ventures and new business models, eProcurement is a trend that is growing quickly among governments because it offers a rapid return on investment. “Epylon’s innovations in the eProcurement market are an excellent fit with Accenture’s efforts to build eGovernment solutions around the world,” Wilkins said.

“This acquisition makes it possible for Epylon to maintain its leadership in the highly competitive eGovernment marketplace,” Mohr said. “We will build on the foundation that Epylon’s team has created by adding Accenture’s market insights and management skills to create a new Epylon.”

Epylon’s senior management team and all of its employees were offered continued employment after the acquisition. The financial terms of the deal have not been disclosed.