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Accenture Interactive Completes Acquisition of Creative Agency, Droga5

May 1, 2019

NEW YORK--(BUSINESS WIRE)--May 1, 2019--Accenture (NYSE: ACN) has completed its acquisition of Droga5, one of the most innovative and influential creative agencies. The New York-based agency is now part of  Accenture Interactive,  boosting its capabilities as an Experience Agency able to design, build and run customer experiences that grow brands and businesses.

The acquisition of Droga5, previously announced on April 3, adds more than 500 employees to Accenture Interactive, bringing unparalleled brand expertise, creativity and strategic rigor to help clients reinvent their brand experiences and meaningfully connect people with brands.

“Today’s news represents an exciting new chapter in Accenture Interactive’s journey to build a new agency model,” said Brian Whipple, global CEO, Accenture Interactive. “Together, we have the power to engineer transformative brand experiences, and infuse those experiences with the emotional and inspirational power of brand thinking and creativity. We’re excited about the possibilities of what we can achieve together.”

Founded in 2006, Droga5 is a highly regarded advertising agency with offices in New York and London. The agency is known for its influential and industry-challenging campaigns for clients including Amazon,The New York Times, IHOP and HBO’s Game of Thrones. Last month, Droga5 was named Agency Innovator of the Year in the 2019 Ad Age A-List, lauded for turning out “smart, attention-getting ideas as strategically sound as they were ambitious,” while Campaign handed Droga5 London its top prize for Independent Agency of the Year.

The Droga5 leadership team consisting of creative chairman David Droga, global CEO Sarah Thompson and UK CEO Bill Scott remain in their current roles and will guide the integration, along with the rest of the agency management team. Financial terms of the transaction were not disclosed.

As Accenture Interactive celebrates its 10-year anniversary, the acquisition of Droga5 represents a significant milestone in an already momentous year. Earlier this week, Accenture Interactive was recognized by Ad Age in its Agency Report 2019 as the largest and one of the fastest-growing digital agencies in the world, citing the Droga5 acquisition as a disruptive moment for the industry.

About Accenture

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.

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 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. Statements in this news release speak only as of the date they were made, and Accenture undertakes 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 expectations.

This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks.

Copyright © 2019 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190501005245/en/

CONTACT: David LaBar

Accenture

+1 646 456 4505

david.labar@accenture.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: TECHNOLOGY DATA MANAGEMENT NETWORKS SOFTWARE OTHER TECHNOLOGY COMMUNICATIONS ADVERTISING OTHER COMMUNICATIONS

SOURCE: Accenture

Copyright Business Wire 2019.

PUB: 05/01/2019 08:59 AM/DISC: 05/01/2019 08:59 AM

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