SÃO PAULO - Accenture (NYSE: NYSE:ACN), a global professional services company, has finalized the acquisition of SOKO, an influential Brazilian creative agency known for its impactful brand storytelling. Announced on May 2, 2024, the deal strengthens Accenture's creative arm, Accenture Song, in Brazil and Latin America by adding approximately 300 SOKO employees.
SOKO, recognized for its innovative approach to brand engagement, is now part of Droga5 São Paulo, enhancing the agency's capabilities in the region. The move is seen as a strategic expansion for Accenture Song, the world's largest tech-powered creative group.
Felipe Simi, co-founder of SOKO, has been appointed as the CEO and creative chairperson of Droga5 São Paulo. Simi's leadership and creative vision have earned him significant accolades in the advertising industry, including being named the most admired advertising executive in Brazil in 2023. Brisa Vicente, also a co-founder, will serve alongside Simi as co-CEO. Moreover, Felipe Belinky takes on the role of Chief Operating Officer.
SOKO's expertise lies in creating organic audience engagement through proprietary methodologies and metrics. The agency has been honored with numerous awards for its creativity and innovation, including recognitions from The One Show, Clio Awards, The Effies, Fast Company, and Cannes Lions. It is also ranked among the top three advertising agencies in Brazil by SCOPEN.
The acquisition is part of Accenture's ongoing investment in its marketing services to meet the growing demands for tech-infused creative solutions. Droga5, founded by David Droga in 2006, is known for its strategic and humanity-focused creativity. With the integration of SOKO, Droga5 aims to further its global mission of creating meaningful experiences that resonate with people and add value to their lives.
This expansion is in line with Accenture's broader strategy to provide comprehensive services and solutions across Strategy & Consulting, Technology, Operations, Industry X, and Song, leveraging its extensive global network and industry expertise.
The financial terms of the acquisition have not been disclosed. The information for this article is based on a press release statement.
In other recent news, Accenture's shares have seen a revision in price target by TD (TSX:TD) Cowen, citing concerns over enterprise spending. The firm maintains a "Hold" rating on Accenture's stock, despite reducing the price target from $350.00 to $294.00. TD Cowen also anticipates the company's upcoming third-quarter earnings report with a cautious stance. Accenture's active mergers and acquisitions strategy was also noted, with recent acquisitions including Teamexpat, a specialist in embedded software for high-tech industries.
Representative Kevin Hern has invested in Accenture shares, with purchases valued between $1,001 and $15,000. BofA Securities has also revised its price target for Accenture shares to $365, maintaining a Buy rating despite the adjustment.
In the realm of business developments, Accenture Song has been named the global creative and content agency of record for Randstad NV, aiming to enhance the latter's brand positioning and marketing communications. These are among the recent developments involving Accenture, indicating the company's active role in both the investment and business sectors.
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