Street Calls of the Week
CHANDLER, Ariz. - Insight Enterprises (NASDAQ:NSIT), a prominent player in the Electronic Equipment and Instruments industry with a market capitalization of $3.57 billion, announced Wednesday it has acquired Inspire11, a Chicago-based business transformation and technology delivery firm, in a move to enhance its ability to deliver measurable returns on AI investments for clients. According to InvestingPro analysis, the company is currently trading below its Fair Value, suggesting potential upside opportunity.
The acquisition aims to address a significant industry challenge highlighted by a recent MIT study that found 95% of generative AI pilots fail to deliver measurable business value. Inspire11, founded in 2016, has developed a portfolio of over 30 enterprise-grade AI accelerators and a proprietary AI platform designed to increase deployment velocity by up to 80%. This strategic move comes as Insight maintains strong financial health, with InvestingPro data showing $8.36 billion in revenue and a healthy current ratio of 1.29.
"Clients need a partner to close the gap between AI hype and business results, and this acquisition builds on our proven success in integrating services-led companies to do just that," said Joyce Mullen, president and CEO of Insight.
The deal brings nearly 400 professionals from Inspire11 to Insight’s global team. Inspire11 has been recognized on the Inc. 5000 list of America’s fastest-growing companies for five consecutive years and maintains a 9.4/10 Net Promoter Score with its enterprise clients.
Alban Mehmeti, CEO and co-founder of Inspire11, said: "Together, we can help organizations reimagine what’s possible with AI, and then actually bring it to life with speed, precision, and impact."
Insight Enterprises, a Fortune 500 Solutions Integrator, provides digital transformation services with expertise in cloud, data, AI, and cybersecurity. The company did not disclose financial terms of the acquisition in its press release statement. For investors seeking deeper insights into Insight Enterprises’ financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks, including detailed metrics and expert analysis that help transform complex financial data into actionable investment intelligence.
In other recent news, Insight Enterprises reported its second-quarter financial results, which did not meet analyst expectations. The company announced adjusted earnings per share of $2.45, narrowly missing the analyst consensus of $2.46. Revenue was reported at $2.09 billion, falling short of the anticipated $2.15 billion and marking a 3% decline compared to the same period last year. These results reflect the challenging market conditions Insight Enterprises is currently facing. The announcement follows a period of anticipation from investors regarding the company’s performance. Analysts had projected higher figures for both earnings and revenue, but the reported numbers did not align with these expectations. This development comes amid broader market challenges impacting the IT solutions sector.
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