- Accenture is considering selling its Greater China operations for up to $1.5 billion
- JPMorgan has been engaged to explore options after unsolicited interest in the unit
- The business covers mainland China, Hong Kong, and Taiwan with PE and strategic buyers
Accenture is exploring a potential sale of its Greater China operations in a deal that could value the business at up to $1.5 billion, as the technology consulting giant sharpens its strategic focus amid growing uncertainty over artificial intelligence, reported Financial Times.
The company has engaged JPMorgan to review options for the unit after receiving unsolicited interest over the past year.
The business spans mainland China, Hong Kong and Taiwan, with private equity firms and a limited number of strategic buyers expected to consider a potential acquisition.
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According to the report, Accenture could retain a significant minority stake to maintain continuity for clients, although the review may not ultimately lead to a transaction. The company and JPMorgan declined to comment on the reported process.
The potential divestment comes as Accenture reassesses where to deploy resources while investors debate how AI will reshape the consulting industry.
The company expects businesses to increase spending on AI implementation services, while sceptics warn that automation could reduce demand for traditional consulting and outsourced functions.
Regulatory constraints have added complexity to operations in China. Tighter rules governing sensitive information have prompted some Western professional services firms to scale back their operations and separate their technology systems, limiting the scope for cross-border integration.
Accenture reported revenue of $74.2 billion for the financial year ended in August and operates in more than 120 territories. Its broader Asia-Pacific business generated around $10 billion in revenue last year.
At an investor event, Accenture forecast subdued revenue growth over the next two years, followed by an acceleration towards the end of the decade as demand for AI services expands.
The outlook helped lift investor sentiment, with shares rising 85% from their June low, while the company's latest full-year results exceeded Wall Street expectations.
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A sale could provide funds for acquisitions that strengthen Accenture's AI capabilities, alongside investments in lower client pricing and shareholder returns through buybacks and dividends.
Chief Financial Officer Angie Park indicated that exiting businesses and markets falling short of strategic or financial targets remained part of the company's approach.
The review signals Accenture's willingness to reshape its portfolio as the AI-led transformation of consulting gathers pace.
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