Accenture to Acquire King James Group, One of the Largest Independent Creative Agencies in South Africa

Rhea-AI Summary

Accenture (NYSE: ACN) has announced its first acquisition in South Africa and on the African continent, entering into an agreement to acquire King James Group, a creative agency known for its expertise in brand strategy and digital marketing. This acquisition aims to enhance Accenture Interactive’s focus on creativity in experience-led transformation, benefiting its clients. King James Group, founded in 1998, employs around 300 professionals and is recognized for its creative accolades. The transaction's terms remain undisclosed and are subject to customary closing conditions.

Positive

• First acquisition in South Africa demonstrates commitment to African market.
• Strengthens Accenture Interactive's capabilities in brand strategy and digital marketing.
• King James Group has a team of 300 skilled professionals.
• Enhances client offerings with integrated solutions across marketing and experience.

Negative

• None.

This is the first planned acquisition for Accenture in South Africa and on the African continent

JOHANNESBURG--(BUSINESS WIRE)-- Accenture (NYSE: ACN) has entered into an agreement to acquire King James Group, a highly awarded creative agency with deep expertise in brand strategy, creativity and digital marketing services. The move will strengthen Accenture Interactive’s focus on putting creativity at the center of experience-led transformation to drive relevance and growth for its clients.

Accenture to Acquire King James Group putting creativity at the center of experience-led transformation (Photo: Business Wire)

“To succeed today, our clients must create unified brand experiences that make their customers’ lives easier and more meaningful. King James Group’s creativity and strength in driving marketing and communications that result in brand equity, will meet our clients’ demands for a single partner with seamless offerings across marketing, commerce and experience,” said Haydn Townsend, Accenture Interactive’s managing director for South Africa.

As the first acquisition for Accenture in Africa, it demonstrates the company’s continued investment in bringing best-in-class thinking, capabilities and innovation to its clients across the continent. King James Group’s team of 300 highly skilled creative and brand experts will join Accenture Interactive in South Africa.

Founded in 1998 with locations in Cape Town and Johannesburg, King James Group offers integrated communications solutions across several industries, including financial services, consumer goods, technology and media. King James Group has consistently been one of South Africa’s most awarded agencies in industry and business rankings, along with countless creative accolades, including Cannes Lions, D&AD, One Show, Clios, Loerie Awards, PRISMS, Bookmarks and the Creative Circle.

James Barty, founding partner and chief executive of the King James Group said: “We have pushed creative boundaries and brand thinking since our inception 24 years ago. Establishing a bigger, more relevant presence has always been on our horizon, and we’re proud to do it in a way that will continue to preserve our ethos, hone our craft and build on our existing achievements. Joining Accenture Interactive will be an incredible opportunity that will offer our people exciting growth and our client’s access to outstanding capabilities on a global scale.”

Alistair King, founder and chief creative officer, King James Group said: “This is not just the logical next step for our agency, but it’s a deeply enticing one. We have long admired the creative path that Accenture Interactive is on, and we relish the prospect of King James Group joining the family. This union will make us a better agency, period.”

Flaviano Faleiro, Accenture Interactive’s president for Growth Markets, said: “As we continue to lead our clients into the future and empower them to put creative excellence and experience at the heart of their business, we are delighted to welcome King James Group. The agency’s capabilities and scale will complement our efforts to meet client demand for transformative experiences in the market and across all industries.”

Completion of the acquisition is subject to customary closing conditions. Terms of the acquisition were not disclosed.

About Accenture

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 569,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com

Accenture Interactive is reimagining business through experience. We drive sustainable growth by creating meaningful experiences that live at the intersection of purpose and innovation. By connecting deep human and business insights with the possibilities of technology, we design, build, communicate and run experiences that make lives easier, more productive and rewarding. Accenture Interactive is ranked the world’s largest digital agency by Ad Age and has been named a Most Innovative Company by Fast Company. To learn more, follow us @AccentureACTIVE and visit www.accentureinteractive.com

About the King James Group

The King James Group is a two-decade young independent South African agency, made up of multiple specialist companies and divisions that work collaboratively. Its specialist teams deliver integrated communications solutions which includes PR, above-the-line advertising, below-the-line design and promotional campaigns, digital communications, corporate reputation, content marketing and social media. It also offers retail expertise in the communications mix through its in-house retail studio as well as shopper marketing. Visit us at www.kingjames.co.za

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. Many of the following risks, uncertainties and other factors identified below are, and will be, amplified by the COVID-19 pandemic. These risks include, without limitation, risks that: the transaction might not achieve the anticipated benefits for Accenture; Accenture’s results of operations have been significantly adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic; 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 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 evolving 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 incidents 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 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 ability to attract and retain business and employees may depend on its reputation in the marketplace; as a result of Accenture’s geographically diverse operations and its growth strategy to continue to expand in its key markets around the world, 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; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; 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 might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; 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’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; 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; 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.

Copyright © 2021 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210907005435/en/

Rosie Milton

Accenture

+44 77 6928 6484

rosie.milton@accenture.com

Jonathan Mahapa

Accenture

+27 11 208 3947

jonathan.mahapa@accenture.com

Source: Accenture

FAQ

What is the purpose of Accenture's acquisition of King James Group?

The acquisition aims to enhance Accenture Interactive's focus on creativity in experience-led transformation for its clients.

When was the acquisition of King James Group announced?

The acquisition announcement was made by Accenture on September 7, 2021.

What impact will King James Group's acquisition have on Accenture's operations?

The acquisition will strengthen Accenture's capabilities in brand strategy and digital marketing, providing more seamless offerings to clients.

What is the stock symbol for Accenture?

Accenture's stock symbol is ACN.

How many professionals will join Accenture from King James Group?

Approximately 300 professionals from King James Group will join Accenture Interactive.