Accenture Plc has gone on a cybersecurity acquisition spree at the same time as it forecast lower-than-expected revenue, which sent its share price plunging.
The technology consulting company said it was buying a majority stake in Dragos and 100% of runZero and NetRise for US$4.18 billion (A$5.95 billion).
The acquisitions were announced with third-quarter earnings and a downgrade to the full-year revenue outlook.
Accenture said it expected revenue growth in the year ended 31 August to be 3-4%, excluding an estimated 1% impact from its United States federal business, compared with 3-5% previously.
The firm also raised the lower end of its full year earnings per share (EPS) guidance with diluted EPS to be $13.38-$13.50, a 10-11% increase on the previous year, compared with $13.25-$13.50 (9-11% growth) previously; and adjusted EPS to $13.78-$13.90, a 7-8% increase, versus $13.65-$13.90 (6-8%).
Accenture shares (NYSE: CAN) closed $28.19 (18.05%) lower at $127.98, capitalising the company at $78.57 billion on Thursday (Friday AEST).
At one stage, they fell as low as $125.60, the lowest level since 2017.
The Dublin-based company said the war in Iran reduced revenue in the three months ended 31 May by about $400 million and it warned of further disruption in coming months.
Chief executive Julie Sweet said the acquisitions reflected growing demand from clients facing rising geopolitical risks and cyberattacks driven by artificial intelligence (AI).
"Our agreement to acquire a majority stake in Dragos and all of runZero and NetRise is the type of move that defines our strategy," Sweet said in a news release.
"It is expanding our addressable market, creating a new platform-led growth opportunity and positioning Accenture at the centre of one of the most critical cybersecurity challenges our clients face."
Accenture said it planned to spend $9 billion on acquisitions this year as it expanded its capability in AI, cloud and data, which was where clients were concentrating their spending on large projects tied to cost savings and growth.
Accenture was formed in 1953 as the consulting division of accounting firm Arthur Andersen before becoming a separate business. The company was renamed Andersen Consulting in 1989, and rebranded and listed under its current name in 2001.
