Consultancy giant Accenture is eyeing a potential sale of its Chinese business operations for up to $1.5bn.
The world’s largest publicly traded IT consultancy has hired JPMorgan to work on a strategic review of its Chinese business after receiving unsolicited interest in it over the past year, the Financial Times reported.
Accenture’s Greater China unit may be valued at up to $1.5bn, the report added. The review is not guaranteed to result in a transaction.
The sale is expected to draw interest from private equity groups and a small collection of strategic buyers. The consulting firm is anticipated to potentially retain a significant majority stake in the Chinese business.
Accenture’s Greater China operations include mainland China, Taiwan, and Hong Kong, according to the firm’s website. The consulting giant operates across 120 territories globally, and its wider Asia-Pacific business made approximately $10bn in revenues last year.
Potential sale follows share hike
At a recent investor event, Accenture’s chief financial officer, Angie Park, said the firm has a record of “exiting businesses, offerings, countries, contracts that no longer meet our strategic or return thresholds”.
The potential sale follows Accenture’s shares soaring upon releasing its fourth quarter results where it disclosed that it topped its own revenue targets and shrugged off the worst fears of an AI-induced slowdown.
Shares in the company surged beyond 22 per cent in early trading on 1 October to mark the company’s biggest one day gain on record, after a year in which billions has been wiped from its value on fears over the threat of AI to the consulting industry.
The consulting giant said it expects to hit full-year revenue growth of between three and six per cent for the 2027 financial year and predicts to return at least $9.5bn [£7.2bn] in cash to shareholders.
JP Morgan declined to comment. Accenture did not respond to a request for comment outside ordinary business hours.