May 23, 2018
Accenture Interactive Will Expand Capabilities with Acquisition of HO Communication to Deliver Connected Brand Experiences in Greater China
SHANGHAI; May 23, 2018 – Accenture (NYSE: ACN) has agreed to acquire Shanghai-based HO Communication, a full-service digital marketing agency in China with a strong portfolio of local and multinational clients. The acquisition will expand the ability of Accenture Interactive to bring its unique blend of digital design, marketing, content and commerce services to clients in Greater China seamlessly and at scale.
With offices in Shanghai, Beijing, Chengdu and Nanjing, HO Communication is one of the leading independent, digital integrated marketing agencies in China focused on omni-channel brand experiences and customer engagement. It offers a connected set of marketing services ranging from content creation and creative design to branding and media services that create engaging brand experiences for clients.
“We are committed to China and our clients to continuously uplift our capabilities, especially in an area as critical as digital to help our clients transform and grow,” said Wei Zhu, chairman of Accenture Greater China. “China is the world’s largest digital consumer market. HO Communication will strengthen our ability to meet the growing digital demands of our clients, be their partner of choice in digital transformation, and help them achieve better business performance.”
HO Communication will be the latest addition to the Accenture Interactive portfolio in Greater China, which includes Fjord, a global leader in design and innovation consultancy; PacificLink, an independent set of digital agencies in Hong Kong; Altima, a digital commerce agency; and Mackevision, a leading producer of CGI and immersive content. Together, they help clients envision, create and operationalize the best customer experiences possible. Accenture Interactive’s vision is to make best-in-class digital capabilities seamlessly available to clients to co-create and design innovative solutions in Accenture’s Interactive Studios.
“HO Communication’s leading omni-channel customer engagement capabilities will add to Accenture Interactive’s existing offerings in Greater China. Combined with Accenture’s scale across all our capabilities Greater China, it will provide a compelling client proposition for maximum impact to business performance,” said Jason Chau, managing director, Accenture Interactive Greater China. “The combination will put a more complete set of capabilities at the fingertips of our clients, enabling them to harness the creativity of a digital marketing agency and the insights of a business consultancy, and giving them access to a technology powerhouse to create the best experiences on the planet.”
Lamy Zhang, CEO of HO Communication, said: “The state of the traditional marketing and advertising industry is changing. Clients want campaigns, but they also want advice on strategy and assistance on delivery. We see this as the future for the industry, and want to be part of creating and shaping that future, which is why I’m excited about pairing up with Accenture.”
Founded in 2014, HO Communication employs more than 200 people across China with digital creative, design, marketing, media, and brand content capabilities. HO Communication is an award-winning agency for more than 100 Chinese and multinational clients across China.
The acquisition is subject to customary closing conditions. The terms of the deal were not 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 approximately 442,000 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 has been ranked the world’s largest digital agency in the latest Ad Age Agency Report, for the third year in a row. To learn more, follow us @AccentureSong and visit www.accentureinteractive.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 Ho Communication 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 have liability or Accenture’s reputation could be damaged 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; 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; 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 results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; 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; Accenture might not be successful at identifying, acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s global delivery capability is concentrated in India and the Philippines, which may expose it to operational risks; 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; adverse changes to Accenture’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; 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; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; any changes to the estimates and assumptions that 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 favorable 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.
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Contacts:
Irene Ying Han
Accenture
+86 21 2305 3348
irene.ying.han@accenture.com
Lara Wozniak
Accenture
+852 6027 3966
lara.wozniak@accenture.com