Accenture Completes Acquisition of Acquity Group, Strengthening its Digital Marketing and eCommerce Capabilities
Accenture (NYSE: ACN) has completed its acquisition of Acquity Group
Ltd. (NYSE MKT: AQ), the second-largest independent digital marketing
company in the United States, which provides strategy, digital marketing
and technical services to help companies enhance their brand experiences
and eCommerce performance.
The acquisition, first announced
on May 17, further strengthens and expands the broad range of
digital marketing services that Accenture provides clients through Accenture
Interactive, which offers chief marketing officers and brand leaders
a comprehensive suite of marketing, technology and analytics solutions
to improve their marketing performance. Accenture paid $13.00 per
outstanding American Depositary Share, each of which represents two
ordinary shares, or a total of approximately $316 million in cash for
Acquity Group.
“Acquity Group’s skills and capabilities in eCommerce and leading
digital platforms such as Adobe and hybris will complement Accenture’s
strengths in strategy, analytics, technology enablement and marketing
operations,” said Brian Whipple, global managing director of Accenture
Interactive. “Together, we are better positioned to blend the creative
process with technology at scale and deliver transformational solutions
that provide innovative and engaging customer experiences across
channels.”
About Accenture
Accenture is a global management consulting, technology services and
outsourcing company, with approximately 266,000 people serving clients
in more than 120 countries. Combining unparalleled experience,
comprehensive capabilities across all industries and business functions,
and extensive research on the world’s most successful companies,
Accenture collaborates with clients to help them become high-performance
businesses and governments. The company generated net revenues of
US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home page
is www.accenture.com.
Accenture Interactive helps the world’s leading brands drive superior
marketing performance across the full multichannel customer experience.
Comprising more than 4,000 Accenture professionals dedicated to serving
the marketing function, Accenture Interactive offers integrated,
industrialized and industry-driven marketing solutions and services
across consulting, technology and outsourcing powered by
analytics. Follow @AccentureSocial or visit Accenture Interactive.
Forward-Looking Statements
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: the transaction might not
achieve the anticipated benefits for Accenture; Accenture’s and Acquity
Group’s results of operations could be adversely affected by volatile,
negative or uncertain economic conditions and the effects of these
conditions on Accenture’s and Acquity Group’s clients’ businesses and
levels of business activity; Accenture’s and Acquity Group’s businesses
depend on generating and maintaining ongoing, profitable client demand
for Accenture’s and Acquity Group’s services and solutions, and a
significant reduction in such demand could materially affect Accenture’s
or Acquity Group’s results of operations; if Accenture or Acquity Group
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, Accenture’s or Acquity Group’s business, the
utilization rate of Accenture’s or Acquity Group’s professionals and
Accenture’s or Acquity Group’s results of operations may be materially
adversely affected; the markets in which Accenture and Acquity Group
compete are highly competitive, and Accenture and Acquity Group might
not be able to compete effectively; Accenture or Acquity Group could
have liability or Accenture’s or Acquity Group’s reputation could be
damaged if Accenture or Acquity Group fails to protect client and/or
company data or information systems as obligated by law or contract or
if Accenture’s or Acquity Group’s information systems are breached;
Accenture’s and Acquity Group’s results of operations and ability to
grow could be materially negatively affected if Accenture and Acquity
Group cannot adapt and expand their services and solutions in response
to ongoing changes in technology and offerings by new entrants; as a
result of Accenture’s geographically diverse operations and its growth
strategy to continue geographic expansion, Accenture is more susceptible
to certain risks; Accenture’s Global Delivery Network is increasingly
concentrated in India and the Philippines, which may expose it to
operational risks; Accenture’s and Acquity Group’s results of operations
could materially suffer if Accenture and Acquity Group are not able to
obtain sufficient pricing to enable them to meet their profitability
expectations; if Accenture’s pricing estimates do not accurately
anticipate the cost, risk and complexity of Accenture performing its
work or third parties upon whom it relies do not meet their commitments,
then Accenture’s contracts could have delivery inefficiencies and be
unprofitable; Accenture’s work with government clients exposes Accenture
to additional risks inherent in the government contracting environment;
Accenture’s and Acquity Group’s businesses could be materially adversely
affected if Accenture or Acquity Group incurs legal liability in
connection with providing its services and solutions; Accenture’s and
Acquity Group’s results of operations could be materially adversely
affected by fluctuations in foreign currency exchange rates; Accenture’s
alliance relationships may not be successful or may change, which could
adversely affect Accenture’s results of operations; outsourcing services
and the continued expansion of Accenture’s other services and solutions
into new areas subject Accenture to different operational risks than its
consulting and systems integration services; Accenture’s and Acquity
Group’s services or solutions could infringe upon the intellectual
property rights of others or Accenture and Acquity Group might lose
their ability to utilize the intellectual property of others; Accenture
and Acquity Group have only a limited ability to protect their
intellectual property rights, which may be important to Accenture’s or
Acquity Group’s success; Accenture’s and Acquity Group’s ability to
attract and retain business and employees may depend on their
reputations in the marketplace; Accenture might not be successful at
identifying, acquiring or integrating businesses or entering into joint
ventures; Accenture’s profitability could suffer if its cost-management
strategies are unsuccessful, and Accenture may not be able to improve
its profitability through improvements to cost-management to the degree
it has done in the past; many of Accenture’s contracts include payments
that link some of its fees to the attainment of performance or business
targets and/or require Accenture to meet specific service levels, which
could increase the variability of Accenture’s revenues and impact its
margins; changes in Accenture’s or Acquity Group’s level of taxes, and
audits, investigations and tax proceedings, or changes in Accenture’s
treatment as an Irish company, could have a material adverse effect on
Accenture’s or Acquity Group’s results of operations and financial
condition; if Accenture is unable to manage the organizational
challenges associated with its size, Accenture might be unable to
achieve its business objectives; if Accenture or Acquity Group is unable
to collect its receivables or unbilled services, Accenture’s or Acquity
Group’s results of operations, financial condition and cash flows could
be adversely affected; Accenture’s and Acquity Group’s share price and
results of operations could fluctuate and be difficult to predict;
Accenture’s results of operations and Accenture’s share price could be
adversely affected if Accenture or Acquity Group is unable to maintain
effective internal controls; 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 Acquity Group’s most recent annual report on Form 20-F and
other documents filed with or furnished to the Securities and Exchange
Commission by Accenture and Acquity Group. Statements in this news
release speak only as of the date they were made, and Accenture and
Acquity Group undertake no duty to update any forward-looking statements
made in this news release or to conform such statements to actual
results or changes in Accenture’s or Acquity Group’s expectations.
Copyright Business Wire 2013