June 24, 2016
Accenture to Expand Digital Transformation Capabilities for Retail and Consumer Goods Companies with dgroup Acquisition
HAMBURG; June 24, 2016 – Accenture (NYSE: ACN) has entered into an agreement to acquire dgroup, a German-based consultancy that delivers end-to-end management consulting services to help companies achieve digital transformation. The acquisition will increase Accenture’s digital consulting capabilities in the German market and strengthen the broad range of services Accenture provides to support digital transformation, primarily for retail and consumer goods companies.
dgroup, which was founded in 2001, employs approximately 60 people and has locations in Hamburg and Dusseldorf. Terms of the acquisition were not disclosed, and completion of the acquisition is subject to customary closing conditions.
dgroup provides a range of services, primarily for retail and consumer goods companies, which include e-commerce and multi-channel services, online marketing and analytics, application development, IT architecture and project management. It offers consulting advice and methodologies to support digital innovation and it provides clients with transformation and execution services to develop new digital ventures.
“The acquisition of dgroup will help expand Accenture’s leading combination of digital transformation capabilities in Germany,” said Michael Brueckner, managing director, Accenture, Austria, Switzerland and Germany. “dgroup’s local market experience coupled with Accenture’s global reach, industry knowledge and technology expertise will enhance Accenture’s capabilities and talent in digital and management consulting, bringing together a highly skilled team focused on digital excellence. Not only will Accenture have a greater presence in the digital market, we will be better placed to make our extensive global digital transformation capabilities available to all clients.”
“dgroup has established a reputation for agile approaches to digital transformation and execution in Germany,” said Mathias Gehrckens, co-founder and managing partner, dgroup. “We are excited to join the global Accenture family and adding our knowledge and expertise to Accenture’s global capabilities. Together we will bring new value to a greater range of clients.”
“Retail and consumer goods companies are among the most affected by digital disruption. Millennial consumers in particular expect digital interaction and a personalized customer experience. To meet the future needs of these digital consumers, retail and consumer goods clients are rethinking their commercial operating models and require increasing support for digital transformation,” said Brueckner. “This acquisition supports Accenture’s strategy of building digital capabilities to provide end-to-end digital transformation services.”
In 2015, dgroup won the brand eins award for “Best Consultancy 2015" and was among the “Top 10 Management Consultancies for Internet / Media”.
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 more than 375,000 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.
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 dgroup 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, entering into joint ventures or divesting businesses; 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; if the company 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 the company makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; 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; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; 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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