Accenture NZ’s full size has been disclosed following its acquisition of SAP expert consultant Zag.
According to Accenture NZ’s financial statements, revenue nearly doubled during the year ending August 31, 2021, from $66.1 million to $120.8 million. For over 11 months of that year, Accenture was the only owner of Zag.
In early October 2020, the company acquired Wellington-based Soltians, which trades under the name Zag, for $39.8 million, following a drop in revenue in 2020.
Accenture NZ reported total revenues of $66.1 million in 2020, down from $76.7 million the previous year. After-tax earnings fell from $9.5 million to $6.8 million. In 2021, net profit fell even more, to $2.3 million.
According to a note, Zag was purchased to boost the amount of in-demand SAP specialists on staff, particularly those with expertise linked to SAP’s latest cloud ERP software, S/4 HANA. A total of 200 full-time equivalent employees were hired.
Employee spending increased dramatically from $14.5 million to $53.2 million, according to Accenture NZ’s latest financial disclosures. Subcontractor costs increased significantly, rising from $3.6 million to $10.3 million, while the price of acquired consultant services increased significantly, rising from $24.4 million to $31.7 million.
Last year, Ben Morgan, Accenture’s managing director for New Zealand, stated that combining Accenture’s global expertise with Zag’s local talent and insight would strengthen Accenture’s ability to help clients accelerate their business transformations using SAP and cloud technologies while also delivering more value from the new platforms.
He remarked, “This move underscores our continuous commitment to bringing new thinking, talent, and innovation to clients throughout the region.”
According to Nick Mulcahy, Zag had developed from an idea to a profitable business, then Zag’s CEO and currently head of technology and managing director of Accenture NZ.
“The combination of Accenture and Zag is a fantastic opportunity for our clients and people, and we’re excited to provide an unrivalled SAP offering,” he said.
According to NZ Companies Office documents, Mulcahy or parties affiliated with him held close to 30% of Zag through Soltians. In 2003, he joined the company, known as Soltius, as a senior consultant.