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Accenture to Acquire Gestalt, LLC, Expanding its Defense Consulting Practice


Accenture (NYSE: ACN) has agreed to acquire Gestalt, LLC, a privately held defense consulting firm that provides mission-support services to the U.S. Department of Defense. Terms were not disclosed.

Gestalt, based in Camden, N.J., provides mission-critical command and control systems and solutions that help defense organizations achieve systems interoperability and collaboration, allowing information systems from separate branches of the armed services to share battlefield information in support of joint military operations. Gestalt also provides services related to modeling and simulation, advanced decision-support technologies, energy-management solutions, and tactical collaborative networks. Its clients include the U.S. Armed Forces, the Defense Information Security Agency, and regional power grid management organizations.

The acquisition will expand Accenture’s offerings in command and control systems, which are designed to help military commanders maintain situational awareness on the battlefield, develop military options and execute courses of action through constant data collection, processing and analysis. This segment of military operations is commonly referred to as C4ISR, which stands for Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance. Gestalt’s experience will support Accenture’s entry into the U.S. military market for command and control systems, which is estimated by Frost & Sullivan to grow to $29.4 billion by 2010.

“With this acquisition, we have expanded the range of capabilities that will enable our defense clients and their customers to achieve high performance,” said Eric Stange, managing director of Accenture’s U.S. Defense practice. “Together, Accenture and Gestalt will provide the Defense Department with cross-domain skills in C4ISR that will enable our Armed Forces to fight smarter, respond more quickly and execute more efficiently.”

Following the acquisition, Gestalt’s 250 employees will be offered positions with Accenture, and Gestalt CEO William Loftus will have a leadership role within Accenture’s Public Service operating group, as part of Accenture National Security Services LLC.

“Accenture and Gestalt are an excellent strategic fit in terms of their complementary skills and assets,” said Gestalt CEO William Loftus. “The combination of Accenture’s breadth of resources and capabilities with our key offerings will result in an unparalleled suite of mission-support capabilities.”

The acquisition is subject to customary closing conditions and is expected to close within 60 days.


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