December 02, 2014
Accenture to Acquire Reactive Media Pty Ltd to Expand Capabilities in Digital Design, Marketing, and Strategy in Australia and New Zealand
Acquisition further bolsters Accenture’s growing portfolio of digital marketing services
MELBOURNE; Dec. 02, 2014 – Accenture (NYSE: ACN) has entered into an agreement to acquire Reactive Media Pty Ltd (Reactive), one of Australia’s largest independent and multi-award winning digital agencies. Reactive specializes in creating and delivering differentiated customer experiences through digital channels such as apps, e-commerce web sites and social. The acquisition will strengthen Accenture’s digital marketing and technology services that help clients design solutions for digital customers, channels and markets. Terms of the transaction were not disclosed.
Reactive’s digital capabilities will complement the end-to-end marketing experience services offered through Accenture Interactive, part of Accenture Digital, that include creative design, customer experience, digital production and e-commerce platforms. The acquisition will also give clients access to Reactive’s deep digital capabilities designed to enable chief marketing officers and brand leaders to raise consumer loyalty, boost sales and improve efficiencies.
“Demand is growing rapidly for services that integrate creative ideas with design, usability, data-driven customer insights, and technology in order to create compelling digital customer experiences,” said Brian Whipple, senior managing director, Accenture Interactive. “Brands are recognizing that being relevant to customers has never depended more on how they engage with customers digitally. The agreement to acquire Reactive demonstrates our continued investment in digital marketing services to better help our clients provide innovative and engaging customer experiences across all channels.”
Corporate marketing will undergo a fundamental transformation over the next five years due to the use of digital, according to the majority of chief marketing officers recently surveyed by Accenture Interactive. Further research also indicates both retailers and business suppliers are feeling a marked shift in consumer expectations.
“I’m incredibly proud of the team we have built at Reactive. For the last 17 years, we’ve championed the value of technology and design, particularly their ability to transform industries and help organizations strengthen and grow their relationships with customers,” said Tim O’Neill, managing director and co-founder of Reactive. “By joining Accenture, we will be able to provide our digital services to an even wider range of organizations and provide our existing clients with greater scale and depth of category and industry experience.”
Reactive’s employees will join Accenture Interactive. In 2013, Accenture acquired Fjord and Acquity Group, both of which are also part of Accenture Interactive.
Founded in 1997, Reactive is one of Australia’s largest independent digital agencies, headquartered in Melbourne with offices in Sydney, London, New York and Auckland. The company’s portfolio includes services for design and usability, technology development, digital marketing, digital strategy and e-commerce, delivered to companies in the retail, resources, entertainment, telecommunications and automotive industry as well as public sector organizations.
Completion of the acquisition is subject to customary closing conditions.
Accenture is a global management consulting, technology services and outsourcing company, with more than 305,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.
Accenture Interactive, part of Accenture Digital, helps the world’s leading brands drive superior marketing performance across the full multichannel customer experience. Accenture Interactive offers integrated, industrialized and industry-driven digital transformation and marketing solutions. To learn more follow us @AccentureSocial and visit www.accenture.com/interactive.
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 company and Reactive will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for the company; the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company 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; the markets in which the company competes are highly competitive, and the company might not be able to compete effectively; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and/or company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to ongoing changes in technology and offerings by new entrants; the company’s results of operations could materially suffer if the company is not able to obtain sufficient pricing to enable it to meet its profitability expectations; if the company does not accurately anticipate the cost, risk and complexity of performing its work or if the third parties upon whom it relies do not meet their commitments, then the company’s contracts could have delivery inefficiencies and be less profitable than expected or unprofitable; the company’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; the company’s business could be materially adversely affected if the company incurs legal liability; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment; the company might not be successful at identifying, acquiring or integrating businesses or entering into joint ventures; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; changes in the company’s level of taxes, as well as audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; adverse changes to the company’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; if the company is unable to protect its intellectual property rights from unauthorized use or infringement by third parties, its business could be adversely affected; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; many of the company’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; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; the company’s share price and results of operations could fluctuate and be difficult to predict; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; any changes to the estimates and assumptions that the company makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; the company 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.
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