Accounting giant EY has acquired Adelphi Digital, a digital consultancy firm with operations in Singapore and Australia. Financial terms of the deal were not disclosed.
Roughly 170 Adelphi Digital employees are joining EY, and the acquired company's brand will fade into the EY Digital brand. Adelphi Digital’s CEO, Margaret Manning, shifts to partner in the Advisory practice of EY in Singapore, the company said.
The acquisition will help EY respond to digital disruption in various industries, according to the firm.
“The addition of Adelphi Digital to our already strong digital capabilities in Advisory and Tax service lines means we can help our clients move rapidly and seamlessly from concept to code,” according to Lynn Kraus, the managing partner for EY's Oceania Advisory practice.
M&A activity involving digital consultancies appears strong, though valuations are difficult to pinpoint. Amid multiple November 2018 acquisitions, key deals include:
- Accenture buying Kolle Rebbe;
- Perficient acquiring Elixiter; and
- Tata Consultancy Services (TCS) buying W12 Studios.
Also, Ascential acquired Amazon-focused MSP and consulting firm Flywheel Digital for approximately $400 million.
Consulting firms have been eager buyers for more than a year -- spending more than $1.2 billion in agency acquisitions in 2017, up 134 percent from 2016, according to marketing consultancy firm R3.
There was similar movement during the dot-com boom as a number of so-called Web integrators tried to put their advertising and marketing knowledge to use. Many of them didn’t survive the pop of the dot-com bubble.
