Accenture to Acquire SOKO to Expand Creative and Brand Experience Capabilities in Brazil

SÃO PAULO--(BUSINESS WIRE)--May 2, 2024--

Accenture (NYSE: ACN) has agreed to acquire SOKO, an independent Brazilian creative agency that—by blending creativity, data and a comprehensive understanding of culture—develops brand stories with deep impact in the industry and in society. SOKO will become part of the world-renowned creative agency Droga5, deepening the agency’s influence and relevance in Brazil while strengthening the market’s creative and brand capabilities within Accenture Song—the world’s largest tech-powered creative group.

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Founded in 2015, SOKO is highly acclaimed, ranked as one of the top three advertising agencies in Brazil by SCOPEN for its excellence in innovation and creativity. Its creative work with clients has also been recognized across the international award show circuit, such as The One Show, Clio Awards, The Effies, Fast Company and Cannes Lions.

“SOKO already lives Droga5’s values—they are a creatively-led, strategically-driven, humanity-obsessed agency with massive ambition,” said David Droga, CEO at Accenture Song. “SOKO delivers work with human insight, relevance and care, and I’m confident that as a part of Droga5 in São Paulo, and paired with Accenture Song’s creative and technology prowess, the SOKO team will further elevate our impact and influence on our clients’ businesses in Brazil and beyond.”

“SOKO has always been recognized for our innovation and authenticity. Since our founding days, we’ve embedded a culture of impact, collaboration and diversity,” said Felipe Simi, founder & CEO at SOKO. “We are committed to challenging status quo and to promote—now with scale and reach—an inclusive culture for people and business transformation.”

Headquartered in Brazil’s largest city, São Paulo, SOKO specializes in brand storytelling that engages audiences organically. Through proprietary methodologies and metrics, the agency, which is backed by FLAGCX, has successfully turned powerful ideas into strong brand engagement and impressions for their clients. SOKO’s team of over 300 employees will join Droga5 São Paulo, which opened its doors in 2022.

SOKO was founded by Felipe Simi, co-CEO and chief creative officer. Simi’s 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. From integrated communications and experience innovation to business design, Droga5 exists to build and sustain the most influential brands of the 21 st century through creativity. It has been recognized as Agency of the Year more than 25 times and was named both Ad Age and Adweek’s Agency of the Decade (2010-2019), among many other accolades. With the acquisition of SOKO, Droga5 intends to accelerate its 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.

“The integration of SOKO into Droga5 Sao Paulo gives Accenture Song the opportunity to enhance the brand storytelling approach for our clients, tapping into Brazil’s creative culture and diverse ecosystem," said Eco Moliterno, chief creative officer for Latin America at Accenture Song. "We couldn't be more excited about the shared ambition to deliver exceptional results for client's businesses in Brazil.”

SOKO is the latest in a series of acquisitions that Accenture Song has made globally to bolster its ability to help clients grow, innovate, and sustain relevance, including Work & Co, Unlimited, Mindcurv, GemSeek, The Lumery, Jixie, Rabbit’s Tale, ConcentricLife, Fiftyfive5, The Stable and Romp.

Terms of the transaction were not disclosed. Completion of the acquisition is subject to regulatory approvals and other customary closing conditions.

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.

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

SEOUL, South Korea (AP) — North Korea fired suspected short-range ballistic missiles off its east coast on Friday, South Korea’s military said, a day after South Korea and the U.S. flew powerful fighter jets in a joint drill that the North views as a major security threat.

South Korea's Joint Chiefs of Staff said the weapons launched from the North's east coast Wonsan region traveled about 300 kilometers (185 miles) before landing in the waters between the Korean Peninsula and Japan. Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said a North Korean missile landed outside Japan's exclusive economic zone.

South Korea's Joint Chiefs of Staff statement called the launches “a clear provocation” that threatens peace on the Korean Peninsula. It said South Korea will maintain a firm readiness to repel potential aggressions by North Korea in conjunctions with the military alliance with the United States.

North Korea has extended its run of weapons testing in recent months as part of its efforts to enlarge and modernize its arsenal while diplomacy with the United States and South Korea remains stalled. Last week, North Korean leader Kim Jong Un supervised the test firing of a new multiple rocket launch system, according to the North’s state media.

North Korea says it has been forced to boost its nuclear and missile programs to deal with U.S.-led hostilities. North Korea cites expanded U.S.-South Korean military training, which it calls an invasion rehearsal. Many foreign experts say North Korea uses its rivals' military drills as a pretext for building a larger weapons arsenal in the belief that it would boost its leverage in future diplomacy with the U.S.

On Thursday, two South Korean F-35As and two U.S. F-22 Raptors were mobilized for a combined aerial exercise over the central region of South Korea. North Korea is extremely sensitive to the deployment of sophisticated U.S. aircraft. It was reportedly the first deployment of a U.S. F-22 to South Korea in seven months.

The North's official Korean Central News Agency said Friday the re-deployment of the U.S. F-22s for joint training with South Korea is “another clear proof of the hostile nature of the U.S.” which seeks “a showdown of force” with North Korea. KCNA accuses “the military gangsters” of South Korea of intensifying tensions to keep pace with “their master's confrontation scheme” against the North.

It warned the F-22s flyovers “will only precipitate the advent of a situation that the U.S. does not want to see." But it didn't elaborate what steps North Korea would take.

Also Friday, Kim's sister and senior official Kim Yo Jong said North Korea’s recent weapons tests were part of the country’s five-year arms buildup plan launched in 2021. She said the recently tested weapons are designed to attack Seoul, the South Korean capital, and denied outside speculation that the tests were meant to display weapons that North Korea plans to export to Russia.

“We don’t conceal the fact that such weapons will be used to prevent Seoul from inventing any idle thinking,” Kim Yo Jong said in a statement carried by KCNA.

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Associated Press writer Mari Yamaguchi in Tokyo contributed to this report.

FILE - Kim Yo Jong, sister of North Korea's leader Kim Jong Un, attends a wreath-laying ceremony at Ho Chi Minh Mausoleum in Hanoi, Vietnam, March 2, 2019. On Friday, May 17, 2024, Kim Yo Jong again denied that her country has exported any weapons to Russia, as she labeled outside speculation on North Korea-Russian arms dealings as “the most absurd paradox.” (Jorge Silva/Pool Photo via AP, File)

A TV screen shows a file image of North Korea's missile launch during a news program at the Seoul Railway Station in Seoul, South Korea, Friday, May 17, 2024. North Korea fired a ballistic missile off its east coast on Friday, South Korea's military said, a day after South Korea and the U.S. flew powerful fighter jets for a joint drill that the North views as a major security threat. (AP Photo/Ahn Young-joon)

FILE - In this photo provided by the North Korean government, North Korean leader Kim Jong Un, center, supervises artillery firing drills in North Korea Thursday, March 7, 2024. Independent journalists were not given access to cover the event depicted in this image distributed by the North Korean government. The content of this image is as provided and cannot be independently verified. Korean language watermark on image as provided by source reads: "KCNA" which is the abbreviation for Korean Central News Agency. (Korean Central News Agency/Korea News Service via AP, File)