Accenture's federal arm to acquire Cognosante
Gettyimages.com / Boonchai Wedmakawand
By
Ross Wilkers
Accenture Federal Services is also creating a new health portfolio through this addition of 1,500 people to its team.
Accenture's U.S. federal subsidiary has agreed to acquire Cognosante, the digital transformation and cloud modernization company founded in 2008 and led ever since by Michele Kang.
The addition of Cognosante will bring approximately 1,500 people to Accenture Federal Services' workforce of around 14,000 employees. Both companies expect to close the transaction in June, while other terms of the move announced Monday were not disclosed.
Accenture Federal Services is also creating a new health portfolio as that line of work represented a bulk of Cognosante's work in the federal market including programs that support veterans, active duty military, patients, beneficiaries, providers and payers.
Cognosante has received approximately $380.8 million in prime contract obligations over the trailing 12 months with the Veterans Affairs Department representing around 68% of that, according to USASpending.gov figures. The Health and Human Services Department makes up for 23% of that total spend, followed by the departments of Homeland Security and Labor.
The company's strategy largely centered around cloud computing migration, digital transformation and agile development work for agencies. One of Cognosante's largest jobs is in the supply chain arena via a potential five-year, $545 million task order won in the fall of 2021 at VA.
“We are continually innovating and investing to help federal agencies stay ahead of the ever-changing needs of their mission and customers,” Accenture Federal Services' chief executive John Goodman said in a release.
"As we explored ways to continue to scale and grow, we could not have found a better home than Accenture Federal Services," added Kang. "The company shares our commitment to its clients and people and has industry-leading capabilities, talent, speed, and scale. We look forward to continuing to help our clients modernize, enable the future mission, and enhance the lives of millions of people.”
J.P. Morgan advised Cognosante on the transaction.
For Kang, the sale of Cognosante frees her up for more time and involvement in other ventures including professional sports, particularly soccer.
Kang joined the Washington Spirit's ownership group in December 2020 and became majority owner of the club in March 2022, thus becoming the National Women's Soccer League's first woman of color to become one.
In February of this year, Kang completed her purchase of the majority ownership in Europe's most-successful women's soccer club in Olympic Lyonnais Feminin. Kang is also part of the David Rubenstein-led group that purchased the Baltimore Orioles in the spring.