Accenture (ACN - Free Report) recently announced that it has inked a deal to acquire service design and strategic research firm INSITUM.
Founded in 2003, INSITUM is engaged in helping multinational organizations — such as Bancolombia (CIB - Free Report) , BBVA, CEMEX, Grupo Bimbo, Roche (RHHBY - Free Report) and Uber (UBER - Free Report) — manage key innovation challenges by combining design thinking methods with behavioral science, ethnographic research and business strategy. The company has more than 200 designers, researchers and strategists across the United States, Latin America and Europe; additional studios in Barcelona, Bogota, Buenos Aires, Chicago, Lima and Sao Paulo and is also well connected in Africa, Asia-Pacific and the Middle East.
The deal closure is subject to fulfilment of customary closing conditions (which include antitrust clearance). Financial terms have been kept under wraps.
A Strategic Move to Strengthen Latin American Presence
INSITUM will be incorporated under Accenture Interactive in its design and innovation unit, Fjord.
The union of Fjord and INSITUM is expected to generate design and innovation capabilities, which should boost Accenture Interactive’s position as one of the leading experience agencies in the rapidly growing Latin American market (especially in Mexico where INSITUM is headquartered).
Fjord will get a presence in Argentina, Colombia, Mexico and Peru. Its existing operations in Brazil will also be strengthened though the inclusion of talent and forward-thinking capabilities. Notably, with 28 design studios globally, Fjord’s footprint has quadrupled under Accenture Interactive, thereby strengthening its position as one of the renowned design firms in the world.
“With INSITUM, we will boost Accenture Interactive’s reach in the region and improve our Fjord design capability, which is a crucial component of our mission to deliver the best, most meaningful experiences to people. We’re thrilled about the possibilities of what we can achieve together,” stated Eduardo Bicudo, LatAm lead of Accenture Interactive.
Accenture’s prior initiatives in strengthening its Latin American presence included the acquisition of Spanish advertising agency, Shackleton in April 2019; Brazilian content marketing agency, New Content in December 2018 and Brazilian digital agency, AD.Dialeto in August 2015. The company has been witnessing organic growth in the region on the back of robust demand from pan-regional clients.
We believe Accenture’s acquisition strategy helps it broaden its product portfolio and market share and boosts revenues, apart from strengthening its competitive market position.
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