August 12, 2019
Accenture Interactive to Acquire Leading Design and Innovation Firm, INSITUM
Move to enhance Fjord’s presence and leadership across Latin America
NEW YORK; August 12, 2019 – Accenture (NYSE: ACN) has entered into an agreement to acquire INSITUM, a service design and strategic research firm focused on innovation through a human-centered approach. The acquisition will strengthen Accenture Interactive’s position as a leading Experience Agency in the region by expanding the world-class services of its design and innovation unit, Fjord, in Latin America and beyond.
The combination of Fjord and INSITUM will create leading design and innovation capabilities to bolster Accenture Interactive’s ability to design, build and run experiences that transform businesses and improve people’s lives. The move will expand Accenture Interactive’s presence in the rapidly growing Latin American market, especially in Mexico, where INSITUM is headquartered. It will give Fjord a footprint in Argentina, Colombia, Mexico and Peru, while strengthening its existing operations in Brazil by adding strong talent and forward-thinking capabilities to accelerate the value it drives for clients.
“Having INSITUM join the Accenture Interactive family in Latin America represents an exciting new chapter in our journey to be the leading Experience Agency in the region,” said Eduardo Bicudo, Latam lead, Accenture Interactive. “With INSITUM, we will boost Accenture Interactive’s reach in the region and improve our Fjord design capability, which is a crucial component of our mission to deliver the best, most meaningful experiences to people. We’re thrilled about the possibilities of what we can achieve together.”
“Today’s problems can no longer be solved with yesterday’s solutions,” said Baiju Shah, chief strategy officer, Accenture Interactive and global co-lead, Fjord. “To tackle these challenges, clients must be agile and focus on blending a human-centered design approach with an analytics-led strategy to keep ahead of the unprecedented pace of change and ambiguity we live in. By adding the INSITUM team to the family, we will continue to grow our mission in Latin America by putting design at the heart of innovation.”
For 16 years, INSITUM has been solving key innovation challenges for multinational organizations by combining design thinking methods with behavioral science, ethnographic research and business strategy. As a leading global strategic innovation consultancy, INSITUM has an extensive track record helping large organizations implement user-centered innovation capabilities, envision new products and services, design more relevant experiences and understand human behavior and trends affecting organizations.
INSITUM was founded in 2003 and has more than 200 designers, researchers and strategists across Latin America, Europe and U.S. with headquarters in Mexico City and additional studios in Barcelona, Bogota, Buenos Aires, Chicago, Lima and São Paulo. Its multidisciplinary teams include thought leaders in research, strategy and design who create positive impact for people and organizations, including Bancolombia, BBVA, CEMEX, Grupo Bimbo, Roche and Uber. INSITUM also maintains a network of trusted partners in other parts of the world, giving it the ability to service clients in Africa, Asia-Pacific and Middle East.
Luis Arnal, partner and CEO of INSITUM, said: “We are convinced that design is a key ingredient of innovation and a powerful tool to make the world a better place — truly successful companies know how to incorporate design thinking in everything they do. Being part of Accenture Interactive will allow us to integrate our strategic innovation expertise with new technologies and capabilities in order to amplify the value we deliver to our clients.”
The agreement with INSITUM is a part of a series of actions that Accenture Interactive has taken to strengthen its commitment to Latin America, including the acquisitions of Brazil-based marketing agencies AD.Dialeto and New Content. Other global acquisitions have added to Accenture Interactive’s footprint in the region, such as the recent addition of Spanish advertising agency, Shackleton, which brought a presence in Chile. In addition, organic growth has been driven by increased demand from pan-regional clients in Latin America who require local flavor and regional scale when it comes to communications and creativity.
Today’s news follows other strategic moves for Fjord, including the addition of industrial design capabilities that strengthened its ability to bring to life products and services for the connected world. Under Accenture Interactive, Fjord’s footprint has quadrupled, with 28 design studios globally, making it one of the preeminent design firms in the world.
Completion of the INSITUM acquisition is subject to customary closing conditions, including antitrust clearance. Financial terms of the agreement have not been disclosed.
About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions — underpinned by the world’s largest delivery network — Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 482,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
Accenture Interactive helps the world’s leading brands transform their customer experiences across the entire customer journey. Through our connected offerings in design, marketing, content and commerce, we create new ways to win in today’s experience-led economy. Accenture Interactive is ranked the world’s largest digital agency in the latest Ad Age Agency Report for the third year in a row. Fjord, Accenture Interactive’s design and innovation unit, reimagines people’s relationships with the digital and physical world around them, using the power of design to create services people love. To learn more follow us @AccentureSong or @fjord and visit www.accentureinteractive.com or www.fjordnet.com
Forward-Looking Statements
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: Accenture and INSITUM 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 Accenture; Accenture’s results of operations could be adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the changing technological environment could materially affect the company’s results of operations; if Accenture 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; Accenture could face legal, reputational and financial risks if the company fails to protect client and/or company data from security breaches or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; as a result of Accenture’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if Accenture does not successfully manage and develop its relationships with key alliance partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; if Accenture is unable to protect its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; many of Accenture’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; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; Accenture might be unable to access additional capital on favourable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; Accenture 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.
# # #
Contact:
David LaBar
Accenture
+1 646 456 4505
david.labar@accenture.com
Fernando de Moraes
Accenture
+55 11 5188 0974
fernando.de.m.silva@accenture.com
This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks.
Copyright © 2019 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.