Accenture has acquired Droga5, a New York-based creative agency and advertising firm. It's the latest move in Accenture's bold plan to spend $1.5 billion on digital, cloud and security acquisitions in the company's fiscal year 2019.
Droga5, founded in 2006, has more than 500 employees in New York and London. The creative agency's accounts include Amazon Prime Video, Tourism Australia, The New York Times, IHOP and Game of Thrones. Droga5 also supports such brands such as Chase, Prudential, Kraft, Hershey, Hennessy and Under Armour.
Dave Droga will remain in his role as creative chairman of Droga5, Sarah Thompsonwill continue as global CEO and Bill Scott will remain as UK CEO, working alongside the rest of the agency’s management team, Accenture said.
In a prepared statement, Accenture Interactive CEO Brian Whipple said:
“The future of brand building is not just about creating great ideas; it’s about creating great experiences. 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.”
Accenture Acquisitions: Digital, Cloud, Security
Accenture has acquired roughly 15 businesses for a combined $515 million in the first half of fiscal 2019 (about $34 million per deal, on average) and has roughly $1 billion to spend on buyout targets in the second half of the fiscal year, Accenture CFO KC McClure revealed during the company's March 2019 earnings call.
It's unclear if the Droga5 deal, announced about a week after McClure's statement, was included in those figures.
The acquisition strategy appears to be treating Accenture well. The company delivered stronger-than-expected financial results for its Q2 of fiscal 2019. Among the highlights: Revenue grew 5 percent to $10.5 billion, and net income was $1.14 billion, up from $919.5 million.