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Accenture Completes Acquisition of SOKO

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Accenture (NYSE: ACN) has finalized the acquisition of SOKO, a prominent Brazilian creative agency. The acquisition, initially announced on May 2, 2024, integrates about 300 employees into Droga5 São Paulo, part of Accenture Song.

The move strengthens Accenture's creative and brand capabilities in Brazil and Latin America. SOKO co-CEOs Felipe Simi and Brisa Vicente are appointed as CEO and co-CEO, respectively, with former partner Felipe Belinky becoming the Chief Operating Officer.

SOKO is noted for its innovative brand storytelling and ranks among Brazil's top three advertising agencies. It has earned recognition in major international award shows and aims to boost Droga5's mission of delivering globally impactful creativity.

Positive
  • Accenture's acquisition of SOKO adds approximately 300 employees to Droga5 São Paulo.
  • Strengthens Accenture's creative and brand capabilities in Brazil and Latin America.
  • SOKO is among the top three advertising agencies in Brazil, enhancing Accenture's market position.
  • SOKO's work has been recognized internationally, boosting Accenture's creative portfolio.
  • Felipe Simi, a highly esteemed advertising executive, joins Droga5 São Paulo as CEO and creative chairperson.
Negative
  • The integration of SOKO into Droga5 São Paulo could entail significant transition costs.
  • There may be potential disruptions during the integration phase impacting client relations.
  • The acquisition's financial impact on Accenture's earnings remains uncertain.

Agency joins Droga5 São Paulo, part of Accenture Song; Felipe Simi appointed Droga5 São Paulo CEO and creative chairperson

SÃO PAULO--(BUSINESS WIRE)-- Accenture (NYSE: ACN) has completed the acquisition of SOKO, an independent Brazilian creative agency that develops brand stories with deep impact in society by blending creativity, data and a comprehensive understanding of culture.

Accenture has completed the acquisition of SOKO, an independent Brazilian creative agency that develops brand stories with deep impact in society by blending creativity, data and a comprehensive understanding of culture. (Graphic: Business Wire)

Accenture has completed the acquisition of SOKO, an independent Brazilian creative agency that develops brand stories with deep impact in society by blending creativity, data and a comprehensive understanding of culture. (Graphic: Business Wire)

The acquisition of SOKO, previously announced on May 2, 2024, adds approximately 300 employees to Droga5 São Paulo, deepening the agency’s influence and relevance in Brazil and Latin America, while strengthening the market’s creative and brand capabilities within Accenture Song—the world’s largest tech-powered creative group. SOKO co-CEOs Felipe Simi and Brisa Vicente are appointed CEO and creative chairperson, and co-CEO, respectively, for the agency. Also, former associated partner Felipe Belinky will be Droga5 São Paulo’s Chief Operating Officer.

Headquartered in Brazil’s largest city, São Paulo, SOKO specializes in brand storytelling that engages audiences organically. Through proprietary methodologies and metrics, the agency has successfully turned powerful ideas into strong brand engagement and impressions for its clients. The agency is also ranked as one of the top three advertising agencies in Brazil by SCOPEN for its excellence in innovation and creativity. Its creative work has also been recognized across the international award show circuit, such as The One Show, Clio Awards, The Effies, Fast Company and Cannes Lions. Ahead of this year’s Cannes Lions , SOKO and its work have been shortlisted within the highly coveted Titanium and Glass categories.

SOKO was founded in 2015 by Simi. His creative influence and activism have earned him the title of #1 most admired advertising executive in Brazil according to 2023 Agency Scope research; elected him "Advertising Game Changer" by Meio e Mensagem and nominated him for “Industry Leader” for Prêmio Caboré in 2022. He was also named by Wired Magazine as one of the 50 most creative people in Brazil in 2020.

Droga5 was founded in 2006 by David Droga, and is headquartered in New York, with offices in London, Dublin, Tokyo and São Paulo. With the acquisition of SOKO, Droga5 intends to accelerate its global mission of delivering creativity rooted in strategy and purpose, that is humanity-obsessed and where experiences deeply connect with people and add value to their lives.

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,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture and SOKO 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 have been, and may in the future 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 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 evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to match people and their skills 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 faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture does not successfully manage and develop its relationships with key ecosystem partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; 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 or fail to satisfy certain agreed-upon targets or specific service levels; 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; 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; as a result of Accenture’s geographically diverse operations and strategy to continue to grow in key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce 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 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.

About Accenture

Accenture is a leading global professional services company that helps the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale. We are a talent- and innovation-led company with approximately 742,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world’s leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability. We are uniquely able to deliver tangible outcomes because of our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients reinvent and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our shareholders, partners and communities. Visit us at www.accenture.com.

Accenture Song accelerates growth and value for our clients through sustained customer relevance. Our capabilities span ideation to execution: growth, product and experience design; technology and experience platforms; creative, media and marketing strategy; and campaign, commerce transformation content and channel orchestration. With strong client relationships and deep industry expertise, we help our clients operate at the speed of life through the unlimited potential of imagination, technology and intelligence.

Copyright © 2024 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.

Fernando de Moraes

Accenture

+11 11 5188 0974

fernando.de.m.silva@accenture.com

Source: Accenture

FAQ

When did Accenture announce the acquisition of SOKO?

Accenture announced the acquisition of SOKO on May 2, 2024.

How many employees will join Droga5 São Paulo through the SOKO acquisition?

Approximately 300 employees will join Droga5 São Paulo through the SOKO acquisition.

What is the significance of SOKO's acquisition for Accenture?

The acquisition enhances Accenture's creative and brand capabilities in Brazil and Latin America.

Who has been appointed as the CEO of Droga5 São Paulo after the acquisition?

Felipe Simi has been appointed as CEO and creative chairperson of Droga5 São Paulo.

What recognition has SOKO received in the advertising industry?

SOKO is ranked among the top three advertising agencies in Brazil and has earned accolades in major international award shows.

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