In a bid to strengthen its Enterprise Performance Management (EPM) capabilities, Accenture (ACN ) acquired U.K.-based EPM provider PureApps. The financial details of the deal have not been disclosed.

EPM is a financial management solution which helps firms to streamline operations by efficient cost controlling measures and execute organizational strategies. PureApps EPM solutions are based on Oracle s (ORCL ) Hyperion Enterprise Performance Management and Business Analytics products. PureApps clientele includes Bacardi Martini Ltd. British American Tobacco and Carpetright plc. With this acquisition, Accenture will gain a foothold in the U.K. EPM market and expand its capabilities in other European countries as well.

EPM solutions are in demand today because of the need to increase operational efficiencies. They are also used to forecast business results. These features help the companies to strategize and implement critical business decisions to cope with rapidly evolving markets.

Incidentally, Accentures last acquisition of Enkitec on May 15 expanded its expertise in Oracle engineered systems. Enkitec was an Oracle Platinum partner and specialized in delivering Oracle database technologies and engineering systems to its clients.

Thus, the PureApps acquisition will enable the company to build its expertise leveraging Oracles systems. Accenture is also building its client base, which has helped it to record strong bookings and witness robust growth across insurance, banking and healthcare segments.

It is worth noting that Accenture resorts to strategic acquisitions to diversify its offerings and expand its operating markets. A strong cash balance ($3.63 billion) and operating cash flow ($292.4 million in second-quarter 2014) enable the company to engage in frequent acquisitions. PureApps is Accentures fourth acquisition in calendar year 2014.

However, increasing competition from Cognizant Technology Solutions (CTSH ) and International Business Machines (IBM ), a strained spending environment and Accentures broad European exposure may temper its growth prospects to some extent.

Currently, Accenture has a Zacks Rank #3 (Hold).

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