Management technology outsourcing and consulting service
) recently took over Hong Kong-based online marketing consultant,
Acquity Group Ltd.
) for roughly $316.0 million in cash. The move is part of
Accenture's effort to bolster its digital marketing capabilities.
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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 be added to
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 added U.K.-based design agency
Fjord (in early May) and digital production services vendor
avVenta Worldwide (in Oct 2012) to enhance its interactive
platform. These acquisitions will enable Accenture to address the
critical needs of CMOs while digitizing their marketing plans.
Considering the ongoing need for intelligent marketing, we expect
Accenture's investments in its digital and online 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).