Accenture acquires AI startup Morph in $800 million deal

Monday 20 - 13:20

By: Dakir Madiha

Accenture acquires AI startup Morph in $800 million deal

Accenture has agreed to acquire Morph for about $800 million, marking one of the company’s largest individual deals as it accelerates its push into artificial intelligence services. The acquisition forms part of a broader strategy to deploy $5 billion in targeted investments during fiscal year 2026, focusing on high-growth technology assets tied to enterprise transformation.

The deal centers on a fast-expanding market: modernization of legacy systems. Enterprises still rely heavily on aging software platforms, often built more than a decade ago, which create operational inefficiencies and security risks. The global market for legacy modernization is estimated at around $29 billion in 2026 and is expected to grow at a compound annual rate exceeding 15 percent. Companies face mounting technical debt and a shrinking pool of engineers skilled in legacy programming languages, increasing pressure to upgrade systems.

Morph’s platform uses artificial intelligence to automate the analysis, translation, and refactoring of legacy code. Tasks that once required months of manual engineering can now be executed at scale through AI-driven tools. Advances in generative AI have made it possible to reconstruct system documentation from outdated codebases and convert entire architectures into modern programming languages. These capabilities are increasingly critical as enterprises seek faster and more cost-efficient migration paths.

The acquisition reflects a broader wave of AI-focused deals by Accenture. Chief executive Julie Sweet recently confirmed record bookings of $22.1 billion and outlined plans to scale acquisitions targeting higher-margin services. Earlier moves include the purchase of UK-based AI firm Faculty and the appointment of its cofounder Marc Warner as chief technology officer. The company has also expanded through acquisitions and investments involving data and AI firms across Europe and enterprise software platforms.

Accenture is simultaneously building a broader ecosystem around AI-assisted software development. Partnerships with Anthropic and Mistral aim to integrate advanced language models into enterprise workflows. Thousands of developers are being trained on AI coding tools, reflecting a shift toward automation in software engineering.

The addition of Morph strengthens Accenture’s ability to deliver end-to-end modernization services for large corporations, particularly those in the Fortune 500 that depend on complex legacy systems. As demand for AI-driven transformation accelerates, the deal positions Accenture to capture a larger share of enterprise spending on digital infrastructure and software renewal.