Accenture Interactive Accelerates its Mission to Reinvent Agency Model by Agreeing to Acquire Creative Agency, Droga5
NEW YORK--(BUSINESS WIRE)--Apr 3, 2019--Accenture (NYSE: ACN) has entered into an agreement to acquire Droga5, one of the world’s most innovative and influential creative agencies. The New York-based agency will become part of Accenture Interactive, boosting its capabilities as an Experience Agency able to design, build and run customer experiences that grow brands and businesses.
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Brian Whipple (left), global CEO, Accenture Interactive and David Droga (right), founder & creative chairman, Droga5 (Photo: Business Wire)
Completion of the acquisition is subject to customary closing conditions, including antitrust clearance. Financial terms of the agreement have not been disclosed.
The acquisition will give Accenture Interactive a distinct marketplace position, further enabling it to lead brands into the future. Today’s news represents an evolution in Accenture Interactive’s journey to build a new agency model — one with the power to engineer transformative brand experiences, and infuse those experiences with the emotional and inspirational power of brand thinking and creativity.
“The future of brand building is not just about creating great ideas; it’s about creating great experiences,” said Brian Whipple, global CEO of Accenture Interactive. “We’re excited to work with David Droga and his team of brand strategists and creative minds to further our ambition to improve the full human experience with brands. As we celebrate the 10-year anniversary of Accenture Interactive, joining forces with Droga5 will be a game-changing milestone for us and the industry as we continue to assemble the right mix of capabilities for the modern-day marketer.”
Founded in 2006, Droga5 is a highly-acclaimed creative agency with more than 500 employees in New York and London. Since its inception, Droga5 has become synonymous with ambitious, influential and industry-challenging work; recent examples include award-winning work for Amazon Prime Video, Tourism Australia,The New York Times, IHOP and Game of Thrones’ epic Super Bowl surprise. The agency has been named Agency of the Year 20 times by organizations ranging from Adweek and Advertising Age to Cannes Lions International Festival of Creativity and the North American Effie’s. In addition to the above, Droga5 partners with brands such as Chase, Prudential, Kraft, Hershey, Hennessy and Under Armour.
“Since day one, we have worked hard to push our industry forward and, hopefully, make a positive impact for all,” said David Droga, founder and creative chairman, Droga5. “The world of advertising is changing, and we are excited for this incredible opportunity with a company that will add more dimension to our best ideas and push us beyond our existing ambitions. The proposition we can bring to market with Accenture Interactive will transform the industry.”
Accenture Interactive and Droga5 were born in the digital age and are often touted as trailblazers in an industry undergoing radical change. Both were recently named 2019 Fast Company Most Innovative Companies in Advertising. Accenture Interactive was recognized for “leading the merger of strategic consulting, ad-tech and creative work,” while Droga5 was lauded for its offbeat and transformative ad campaigns. By joining forces, both organizations will be better poised to fulfill their common ambition of building a new agency model — one designed to deliver clients and consumers with seamless, rewarding brand experiences at every touchpoint.
“Customer experience is a proven driver of competitive advantage and sustained business growth – and, we are delighted to bring Droga5’s highly differentiated capabilities to help Accenture Interactive transform experiences for our clients’ customers and continue to be a catalyst for disruption across the industry,” said David Rowland, interim chief executive officer at Accenture.
“In our quest to create the best experiences on the planet, we recognized the need to further raise the bar on our brand creative,” continued Whipple. “Droga5 occupies the top echelon of brand agencies and is a great fit for us due to its world-class creativity, strategic rigor and brand experience capabilities. We’re beyond excited about the possibilities of what we can achieve together.”
Added Droga: “This is the start of an exciting new chapter in Droga5’s history. Accenture Interactive is one of the most disruptive forces in the industry, and we have always been a safe space for audacious ideas. I’m confident they are the best partner to grow our business and provide greater opportunities for our clients and our people. Why live off past glories when you can get busy trying to create new ones?”
Droga will remain in his role as creative chairman of Droga5, Sarah Thompson will continue as global CEO and Bill Scott will remain as UK CEO, working alongside the rest of the agency’s management team.
The addition of Droga5 will represent Accenture Interactive’s biggest acquisition since its founding in 2009. From early acquisitions including design firm Fjord and e-commerce specialist Acquity Group in 2013 to more recent acquisitions, such as creative shops Karmarama and The Monkeys, as well as expanding into areas including Extended Reality and Programmatic Services, the $8.5 billion business has been evolving to stay ahead of the fast-changing needs of today’s CMOs.
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions — underpinned by the world’s largest delivery network — Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 477,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
Accenture Interactive helps the world’s leading brands transform their customer experiences across the entire customer journey. Through our connected offerings in design, marketing, content and commerce, we create new ways to win in today’s experience-led economy. Accenture Interactive is ranked the world’s largest digital agency in the latest Ad Age Agency Report, for the third year in a row, and was named a 2019 Most Innovative Company in Advertising by Fast Company. To learn more, follow us @AccentureACTIVE and visit www.accentureinteractive.com.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: Accenture and Droga5 will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for Accenture; Accenture’s results of operations could be adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the changing technological environment could materially affect the company’s results of operations; if Accenture is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture could face legal, reputational and financial risks if the company fails to protect client and/or company data from security breaches or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; as a result of Accenture’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if Accenture does not successfully manage and develop its relationships with key alliance partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; if Accenture is unable to protect its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; many of Accenture’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; Accenture might be unable to access additional capital on favorable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. 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