Accenture has agreed to acquire ESR Labs, a German embedded software company that works for leading car brands and suppliers. The acquisition will expand Accenture’s capabilities to help its automotive clients drive greater value from software.
Embedded software is the code running on the electronic units that control a vehicle’s functions. Writing it requires a scarce set of experience and skills that the more than 130 software engineers and software architects from ESR Labs will bring to Accenture. ESR Labs also offers solutions to update the code remotely, helps clients develop connected car and mobility services, such as car-sharing, and conducts research into autonomous driving technology.
ESR Labs will join Accenture Industry X.0, the part of Accenture that uses digital technologies to improve how companies design, engineer and manufacture products and services, and operate industrial facilities. As such, ESR Labs will join forces with two other German acquisitions for Industry X.0, strategic design consultancy designaffairs and technology consultancy Zielpuls. Together, they will develop mobility services for carmakers as well as smart connected solutions for medical technology, industrial equipment and high-tech companies.
Andrew Smith, a managing director for Accenture Industry X.0 in Germany, said: “Manufacturing companies need to put software at the core of their business. They also need to adopt and nurture a technology company-like ‘pure developer culture.’ ESR Labs will put us in a great position to help our clients accelerate their plans to do just this.”
Axel Schmidt, a senior managing director and Accenture’s global automotive lead, added, “The automotive industry is at a tipping point. Globally, car sales are declining. Customers are demanding more convenient and customized mobility services. Whoever meets these demands best, will win mobility in the future. With ESR Labs, we can help our clients in the automotive sector embrace and implement new technologies much faster.”
Frank Riemensperger, market unit lead for Accenture in Germany, said, “Bringing together ESR Labs, designaffairs and Zielpuls will go a long way in helping clients in our market tackle their digital challenges. Together, we can help them develop some of the world’s most innovative and high-quality products and services.”
ESR Labs will be the latest acquisition that Accenture has made to strengthen Industry X.0. In February, it bought VanBerlo, a Dutch product design and innovation agency. In 2019, it acquired U.S. product innovation and engineering company Nytec and U.K. innovation firm Happen. In 2018, it bought U.S. embedded software specialist Pillar Technology and US. hardware engineering firm Mindtribe.
Completion of the acquisition is subject to customary closing conditions. Financial terms were not disclosed.