Accenture PLC, the global consulting giant with 732,000 employees and a $194 billion market cap, decided it needed more expertise in helping state and local public sector entities manage large infrastructure projects.
Thus, it’s buying Anser Advisory LLC, a Santa Ana-based consulting firm that’s grown to 1,200 employees.
“Anser has a lot of the great skills that we’re looking to build and develop,” Andy Webster, managing director and global lead for capital projects at Accenture’s Industry X division, which aims to digitize engineering and manufacturing operations for businesses, told the Business Journal.
“We think the combination of Accenture and Anser is a game changer for how projects can be delivered. It positions us in a different way than an organic entry.”
The Anser acquisition will expand Accenture’s capital project capabilities, moving the company into an adjacent business with an estimated $88 billion of addressable market in North America.
The acquisition completes a relatively short history for Anser, a private-equity-backed firm that has grown in recent years by buying minority-owned firms to compete in an industry awash with hundreds of billions in government contracts. Terms were undisclosed.
“We think this is an accelerant for our strategy,” Anser Chief Executive Bryan Carruthers told the Business Journal.
“The opportunity combines our subject expertise with Accenture’s world-class lead in digital and data.”
Accenture ranked No. 2 on the Business Journal’s most recent list of Orange County largest management consulting firms with 390 employees.
Anser lists its corporate headquarters as a roughly 7,000-square foot office at 2677 N. Main St. in Santa Ana. The firm has offices spread among several states and Caruthers himself is based in Austin, Texas.
Lifecycle
Anser said its consulting services cover the entire lifecycle of capital development starting with early stage organizational readiness and delivery strategy through managing the tactical execution of projects.
Its employees include architects, engineers and financial analysts, among others.
The company’s goal is to reduce risks and impacts of project delays and cost overruns on large-scale critical infrastructure projects.
Anser is also entering the industries of “decarbonization and clean energy projects” in sectors including energy transmission, sustainability programs and fleet electrification.
“We advise owners of essential infrastructure and mission-critical infrastructure—what they should be doing and how they should do it,” Carruthers said. “We help owners verify programs are being implemented according to requirements.”
Anser ranked 14th last year on Engineering News-Record’s Top 50 Program Management Firms.
In Southern California, it’s worked on projects ranging from property rights for transmission lines at Southern California Edison to the expansion of Los Angeles International Airport.
Investments in ambitious infrastructure and energy transition projects are projected to drive non-residential spending to $1.033 trillion in the United States in 2023, Accenture predicted.
The investments are driven by government stimuli such as the Inflation Reduction Act, the Infrastructure Investment Jobs Act, and the CHIPS and Science Act and a trend toward bringing manufacturing back to the U.S.
These programs include building and modernizing electric grids, water projects, freight and passenger rail transportation and airports.
“When we look at 2023—over a trillion in non-residential—a healthy portion of that is in Southern California,” Webster said. “There’s a lot of opportunity for us to support that infrastructure spend.”
Beginning
Anser’s origins date to 1996, when it began as Simplus Management Group, which was founded by Paul Buckley and Tracy Buckley.
Paul Buckley’s LinkedIn page says he’s now a senior vice president at Anser, helping to oversee training programs.
Simplus was sold in 2018 to RTC Partners, which then formed Anser by merging it with three other firms classified as “Disadvantaged Business Enterprises” (DBE).
Since then, Anser’s acquired a historically certified DBE in California, a certified Women-Owned Business Enterprise (WBE) in California, a certified Minority Business Enterprise (MBE) in Florida, and a certified WBE and LGBTQ+-owned business in Massachusetts.
Anser now includes a total of 10 legacy minority-owned businesses with a combined staff of 1,200 employees.
Recapitalized
In 2021, Anser was recapitalized when it was sold to Sterling Investment Partners IV LP.
Sterling, a private equity firm based in Westport, Conn., said it builds leading middle market companies into faster-growing businesses.
Sterling’s website said Anser has “substantial free cash flow generation.”
Accenture will acquire the Anser Advisory brand with its approximately 920 employees working on private sector and state and local public projects.
Markon Solutions, a 280-people Anser Advisory subsidiary working with U.S. federal clients, will be retained by Sterling Investment Partners and Markon Solutions management.
Anser in 2021 acquired Markon, which is headquartered in Falls Church, Va.
Accenture’s recent acquisitions has expanded its capabilities for asset-intensive industries such as Eclipse Automation, a provider of customized manufacturing automation and robotics solutions; Umlaut, a global engineering services provider; and Advoco, an asset management services provider.
“By joining Accenture, we will be able to provide new value and scale to our clients to support their missions and opportunities for our people to grow their careers at one of the world’s most prestigious companies,” Carruthers said.
