What happened
Storied professional services company Accenture (ACN -0.32%) is leaping into a cutting-edge segment of the tech world, and investors were happy about the development. On Thursday, following news of its investment in a virtual reality (VR)-powered business, the market sent Accenture's share price nearly 3% higher. That was more than double the percentage gain of the S&P 500 index on the day.
So what
Accenture announced that it has invested in Praxis Labs, a privately held VR company that utilizes an immersive learning program to teach workplace and other skills. Accenture made the investment through its Accenture Ventures arm.
The company did not specify how much of an investment it made in Praxis. It also did not disclose whether it now holds an equity stake in the business.
Praxis, which was founded by women of color, particularly focuses on issues of equality and inclusion. Accenture said that its investment was partly based on its "ongoing commitment" to assist entrepreneurs of color with funding and business assistance.
On its website, Praxis lists several high-profile companies as clients. These include e-commerce mainstay Amazon, rideshare giant Uber, and tech powerhouse Google (owned by Alphabet).
Now what
Although Accenture talked up the Praxis Labs investment more as a diversity move, investors were also likely cheered by the fact that it's pushing deeper into the VR realm. Although VR isn't the hot technology of the moment -- that honor has to go to artificial intelligence (AI) -- it's still in its early stages, and its potential is vast. Getting more involved in the segment will surely open new opportunities for Accenture.
