Accenture to acquire Munich-based ESR Labs to emphasize on smart connected solutions & mobility services

Accenture, a leading global professional services company, that offers a broad range of services has agreed to acquires ESR Labs, a start-up company based in Munich, which develops embedded software for leading German car brands and suppliers. With this acquisition, Accenture would extend their capabilities to help drive higher value from the software to its automotive clients. Accenture will also take on the experience and skills of ESR’s 130 software engineers and software architects, who write the code running on the electronic units that control a vehicle’s functions.

Embedded software is the application that runs on the electronic units controlling the functions of a vehicle. ESR Labs also provides remote code maintenance solutions, helps clients build connected car and mobility services, such as car-sharing, and conducts autonomous driving technology research.

As per the acquisition agreement, ESR Labs will join Industry X.0 of Accenture which uses digital technology to develop the design, development, and manufacture of goods and services for businesses and the operation of industrial facilities. As such, ESR Labs will connect with two more German acquisitions for Industry X.0, strategic design consultancy Designaffairs, and development consultancy Zielpuls. Together they will develop mobility services for carmakers as well as smart connected solutions for medical devices, industrial equipment, and high-tech companies.

According to Andrew Smith, managing director of Accenture Industry X.0 in Germany, "Fabrication companies must place software at the heart of their business. They should also embrace and foster a technology-like 'pure developer community.' ESR Labs will place Accenture in a great position to help our customers speed up their efforts to do just that."

According to Axel Schmidt, a senior managing director & Accenture's global automotive lead, "The automotive industry is at a turning point. Car sales are increasing globally. Customers expect more efficient and personalized mobility services. Whoever best meets these demands will achieve mobility in future. With ESR Labs, we will help our automotive customers adapt and introduce new technologies much more quickly."

ESR Labs will be Accenture's new acquisition to improve Industry X.0. In February 2020, Accenture acquired VanBerlo, a Dutch product design, and innovation agency. Accenture also acquired US technology research and development firm Nytec and UK tech group Happen in 2019. It bought US embedded device specialist Pillar Technology and US hardware development firm Mindtribe in 2018.