Accenture Acquires avVenta To Extend Social Media Marketing Offering

by Trefis Team
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After the acquisitions of NewsPage and Octagon Research last month, Accenture (NYSE:ACN) is looking at further inorganic growth. It acquired digital production services company avVenta Worldwide this week as it seeks to improve its social media marketing offering. The terms of the deal were not disclosed. avVenta provides digital production and management services for marketing campaigns, including mobile, social and websites. The acquired product portfolio will be integrated with Accenture Interactive. The company will use avVenta’s delivery center in San Jose to service clients in a cost-effective manner. This acquisition provides Accenture with instant access to avVenta’s talent as well as access to 130 Fortune 500 clients in pharmaceutical, financial services and consumer packaged goods industries. [1]

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Exploring New Business Lines For Growth

This is Accenture’s third acquisition in the past two months. It acquired two companies last month: NewsPage, a Singapore-based mobility software provider and, Octagon Research Solutions, a provider of clinical and regulatory information management solutions for the pharmaceutical industry.

The NewsPage acquisition is aimed at bolstering Accenture’s CAS (Consumer Goods and Services) software platform that helps consumer goods companies with their sales process. This acquisition will help Accenture capture a greater market share in the software market in emerging economies. [2]

The Octagon acquisition will help Accenture better cater to its pharmaceutical clients by achieving efficient global regulatory submissions. This will enable pharmaceutical companies to get their drugs in the research pipeline quickly to the market and at lower cost. Efficient regulatory compliance also ensures the drugs meet all necessary standards, ensuring safety. The services offered will range from clinical data collection to regulatory submissions management and will also help extend Accenture’s BPO services to the pharmaceutical industry. [3] We can expect a sizable jump in Accenture’s outsourcing revenues from clinical research and pharmaceutical companies  because of this acquisition in the near future.

We currently have a $73 Trefis Price Estimate for Accenture which is nearly 10% higher than its current market price.

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Notes:
  1. Accenture Takes Over avVenta, community.nasdaq.com, Oct 10, 2012 []
  2. Accenture To Acquire NewsPage, newsroom.accenture.com, August 30, 2012 []
  3. Accenture Newsroom, newsroom.accenture.com, August 2, 2012 []
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  • commented 9 years ago
  • tags: IBM HPQ ACN
  • Social Media is improving and increasing each passing day, so is its significance. Every company is promoting its brand through social media. Nice Informative blog!!!