Endeavor Sells Stake in Ad Agency Droga5
Accenture Interactive has acquired the 49 percent share in the global professional services firm's largest acquisition yet.
Endeavor has sold its minority stake in creative ad agency Droga5 to Accenture Interactive.
Financial terms were not disclosed. Endeavor — then operating under its WME moniker — acquired its 49 percent share in Droga5 in 2013 for a reported $115 million. The award-winning ad agency, whose work includes spots for Amazon Prime Video, The New York Times, IHOP and Game of Thrones' and Tourism Australia's Super Bowl ads, had an estimated 2018 revenue of $245 million. Endeavor's divestiture is seen as a mutually beneficial business move as the company prepares for a rumored public offering later this year. (Endeavor would not comment on any IPO plans.)
Accenture Interactive's acquisition of the 13-year-old Droga5 is its biggest acquisition since the global professional services company was founded a decade ago. Droga5 founder David Droga will continue as creative chairman of the agency, which has 500 employees across its New York and London offices, with Sarah Thompson and Bill Scott remaining as global and U.K. CEO, respectively.
"In our quest to create the best experiences on the planet, we recognized the need to further raise the bar on our brand creative," Accenture Interactive global CEO Brian Whipple said Wednesday in a statement. "Droga5 occupies the top echelon of brand agencies and is a great fit for us due to its world-class creativity, strategic rigor and brand experience capabilities. We're beyond excited about the possibilities of what we can achieve together."
Added Droga in a statement: "This is the start of an exciting new chapter in Droga5's history. Accenture Interactive is one of the most disruptive forces in the industry, and we have always been a safe space for audacious ideas. I'm confident they are the best partner to grow our business and provide greater opportunities for our clients and our people. Why live off past glories when you can get busy trying to create new ones?"