Accenture Agrees To Sell Investment Portfolio to CIBC

Accenture CIBC World Markets

Accenture said it will retain a 5 percent stake in the portfolio, but other terms of the transaction weren't disclosed. The portfolio includes about 80 early and midstage technology companies, primarily in the software sector. Company executives couldn't be reached for comment.

CIBC and Accenture also said they plan to form a strategic alliance to leverage Accenture's technology consulting power and allow the firm to continue its relationships with the portfolio companies.

Accenture said its move to sell its investment portfolio is aimed at "reducing volatility in future earnings." Accenture said it would also discontinue "direct venture-capital investing and no longer accept illiquid securities from clients or alliance partners."

The transaction is expected to close by year-end and is subject to approval from companies within the portfolio.

In mid-July, Accenture reported that its fiscal third-quarter profit, including adjustments to year-ago financials, rose 9.2 percent, and that revenue slipped 2.4 percent. Citing weak demand for its consulting services, the company also said it plans to cut about 1,000 managers by Aug. 31.

The consulting organization legally split from accounting firm Arthur Andersen two years ago. Yet Accenture has still been forced to work hard to stave off negative repercussions from the embattled Arthur Andersen's role in accounting scandals at Enron and WorldCom.

Earlier this year, Accenture CEO Joe Forehand said the company entered into an agreement with plaintiffs in two pending lawsuits involving Enron and Andersen. As part of the agreement, Accenture was not named in the class-action lawsuits filed by Enron shareholders, but the lead plaintiffs reserved the right to file complaints or add Accenture to the litigation at a later date.

Forehand, however, said Accenture believes there is no liability because the company was "not involved in any way in Andersen's relationships with Enron that are alleged to have contributed to Enron's current difficulties."