Accenture to Acquire Origin Digital, Expanding Capabilities in Media, Entertainment and Communications Industries
The acquisition will expand Accenture’s ability to help clients grow their digital media revenue through Origin Digital’s specialized expertise in reaching new customers via mobile, broadband, IPTV and video-on-demand services.
“The digital market has reached critical mass, and bandwidth is now both affordable and economical, driving a revolution in digital media and creating challenges and exciting opportunities for our clients,” said Greg Douglass, managing director of Accenture’s Media & Entertainment practice. “Origin Digital will enhance our ability to help clients transform themselves for this new digital world.”
Origin Digital (www.OriginDigital.com) is well established in the digital media supply chain and has a number of Fortune 500 companies in its client portfolio that are also Accenture clients.
“The addition of Origin Digital video capabilities to Accenture’s Digital Media Services group will complement the experience we developed in music through our acquisition of Digiplug last year,” said Richard Cottrell, managing director of Accenture Digital Media Services (ADMS) group. “Creating a full suite of managed services will accelerate the availability of digital media services to businesses globally.”
ADMS helps digital content producers and providers get high-quality content to the market faster, through more channels and with greater efficiency than ever before. It will manage Origin Digital’s existing services along with those of Digiplug (www.digiplug.com), providing a comprehensive solution set to enable leading content owners and distributors to stay ahead of the explosive demand for digital content and services.
Industry analysts have predicted that the mobile content and services industry will grow by almost 70 percent to $277 billion by 2010.
“We’re excited to be combining our business with Accenture’s technology expertise and global reach,” said Darcy Lorincz, CEO of Origin Digital. “We’re confident that together we will make a significant impact in the digital arena and enable Accenture to become the pre-eminent provider for digital media services worldwide.”
The acquisition is subject to customary closing conditions and is expected to close within 30 days.
More information on Accenture’s Digital Media Services can be found at www.accenture.com/ADMSVideo.
Accenture is a global management consulting, technology services and outsourcing company. 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. With 178,000 people in 49 countries, the company generated net revenues of US$19.70 billion for the fiscal year ended Aug. 31, 2007. Its home page is www.accenture.com.
About Origin Digital, Inc.
Origin Digital is a global video applications service provider that applies the rigors of broadcast to the management, transformation, syndication, and reporting for all forms of digital content from any source to any destination. Through its network of strategic partners and directly via global points of presence, Origin Digital provides hosted applications, tools and services to simplify the capture, conversion, and control of digital media across the value chain. Its clients include media and entertainment organizations, enterprises as well as global brands. Origin Digital is closely held and headquartered in the New York Metro Area. For further information visit www.OriginDigital.com.
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. 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 Origin Digital 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; our business could be negatively affected if we cannot expand and develop our services and solutions in response to changes in technology and client demand; the management consulting, systems integration and technology and outsourcing markets are highly competitive and we might not be able to compete effectively; our business could be negatively affected by economic and political conditions and the effects of these conditions on our clients’ business and levels of business activity; our work with government clients exposes us to additional risks in the government contracting process; clients may not be satisfied with our services; our business could be negatively affected by legal liability that results from our providing solutions or services; our results could be adversely affected if our clients terminate their contracts with us on short notice; our outsourcing services subject us to operational and financial risk; liabilities could arise if our subcontractors or other third parties cannot deliver their project contributions on time or at all; our results of operations may be adversely affected by the type and level of technology spending by our clients; our profitability may suffer if we are not able to maintain favorable pricing rates and utilization rates, if we cannot control our costs, or if we cannot anticipate the cost and complexity of performing our work; our global operations are subject to complex risks, some of which might be beyond our control; our growth and our ability to compete may be adversely affected if we cannot attract, retain and motivate our employees or efficiently utilize their skills, including those personnel currently employed by Origin Digital; our business may be adversely affected if we cannot manage the organizational challenges associated with the size and expansion of our company; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in our most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this press 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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