Management technology outsourcing and consulting service
) recently completed the previously announced (May 20)
acquisition of Hong Kong-based online marketing consultant,
Acquity Group Ltd. for roughly $316.0 million in cash. The move
is part of Accenture's efforts to bolster its digital marketing
ACCENTURE PLC (ACN): Free Stock Analysis
ADOBE SYSTEMS (ADBE): Free Stock Analysis
PROCTER & GAMBL (PG): Free Stock Analysis
SAKS INC (SKS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Founded in 2001, Acquity Group provides brand e-commerce and
digital marketing services. It provides digital strategy services
that include strategies to improve the brand identity of its
clients on a digital platform and enhance their online presence.
Its clientele includes industry leaders such as
Adobe Systems Inc.
), Mine Safety Appliances Co. and Penske Automotive Group Inc.
Acquity Group's intellectual properties will join Accenture
Interactive platform, which is the company's marketing-services
arm. Accenture Interactive was formed in 2009 (in association
with its client
Procter & Gamble Co.
)) in order to deliver superior consulting, technology and
analytics services mainly to chief marketing officers (CMOs).
Competent marketing is the key to success for every organization.
Marketing and digital executives of a company are responsible for
developing digital marketing campaigns, marketing contents,
e-commerce and marketing operations. Accenture Interactive is a
well-integrated platform that helps CMOs devise marketing
strategies and derive higher ROI (return on investment) from it.
Apart from Acquity, Accenture completed the acquisition of
U.K.-based design agency Fjord (in May) and digital production
services vendor avVenta Worldwide (in Oct 2012) to enhance its
interactive platform. This will enable Accenture to address the
critical needs of CMOs while digitizing their marketing plans.
According to U.S.-based IT research firm Gartner Inc., firms
generally spend 2.5% of their revenues on digital marketing and
the spending is expected to go up by roughly 9.0% in 2013. One
more important statistics from Gartner is that around 50.0% of
digital marketing activities get outsourced.
Considering the growing need for digital marketing, we expect
Accenture's investments in its digital and marketing capabilities
to pay off soon.
We are encouraged by Accenture's strategy of growing through
acquisitions. However, increasing competition from IBM Corp., a
strained spending environment and Accenture's broad European
exposure (roughly 40.0%) may temper its growth prospects to some
Currently, Accenture has a Zacks Rank #3 (Hold).