Accenture builds on cloud-first strategy with Cygni acquisition

30 Mar 2021

Joel Hofgren, Accenture Sweden, with Jon Persson, CEO and founder of Cygni. Image: Accenture

The Stockholm-headquartered company is the latest of several acquired by Accenture this year to boost its cloud services offering.

Irish multinational Accenture is set to acquire Swedish company Cygni. The terms of the deal have not been disclosed.

Cygni is a cloud-native full-stack development company supporting digital transformation for other businesses. It has led projects for government and businesses in sectors including communications and utilities, and its team offers a range of IT consulting and implementation services.

Accenture is acquiring Cygni to enhance its in-house cloud services and expertise. It follows the recent launch of Accenture Cloud First, a new division with a 70,000-strong team that will invest $3bn over three years to rapidly expand Accenture’s capabilities and offerings for clients seeking to become cloud-first as part of their digital transformation.

“Having Cygni’s talented team join Accenture Cloud First strengthens our ability to help clients use the cloud and technology innovation to act faster, operate sustainably, and deliver exceptional new experiences,” said Karthik Narain, global lead of Accenture Cloud First. “Our new Cygni colleagues bring key skills to help clients master change in an era of compressed transformation.”

Accenture Sweden’s Joel Hofgren added that the Cygni team will bring deep technical skills and “a strong people culture” to the acquiring company. “Modern software development capabilities are critical to unleashing the transformational power of cloud and adding the exceptional talents of the Cygni team will help propel us forward in realising our Cloud First ambitions,” he said.

‘Solving huge and challenging problems for local and global clients will create even more opportunities for our people to build their skills and experience’

Founded in 2006, Cygni has a workforce of around 190 developers. The company has a number of offices across Sweden while its headquarters are in Stockholm. It also has a base in Amsterdam.

“Ever since Cygni was founded, we have had the vision to be the best place to work for highly skilled and ambitious software developers, which has been the foundation of our success. Now, it is time for the next chapter in our history,” said Jon Persson, CEO and founder at Cygni.

“By joining Accenture, our people will get the opportunity to continue to grow even more as an integral part of Accenture Cloud First. Solving huge and challenging problems for local and global clients will create even more opportunities for our people to build their skills and experience.”

Completion of the Cygni acquisition is subject to customary closing conditions.

It is the latest in a string of acquisitions by Accenture, which also snapped up Germany’s Fable+ and California’s Imaginea to boost its cloud offerings this month. The company acquired UK companies Infinity Works and Edenhouse in February and Brazilian business Wolox in January, all to augment its cloud-first business.

Artificial intelligence businesses have also been targeted for acquisition by Accenture. recently reported that the Irish company stands among US tech giants such as Apple and Google in the race to acquire AI companies.

According to GlobalData’s deals database, Accenture acquired 17 AI-centric companies in the four-year period from 2016 to 2020.

Elaine Burke is the host of For Tech’s Sake, a co-production from Silicon Republic and The HeadStuff Podcast Network. She was previously the editor of Silicon Republic.