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Accenture to Gain From Creative Drive Buyout: Here's How

Zacks Equity Research
·3 mins read

Accenture plc ACN recently announced the completion of the purchase of CreativeDrive, a technology-driven content-production company specializing in enhancing the creative-asset production process. The financial terms of the deal have been kept under wraps.

Founded in 2015, CreativeDrive has a wide network of on-premise content studios for creative-asset production across all formats, including motion, photography, CGI and augmented reality. The company is headquartered in New York City and has additional locations across the United States, Australia, Brazil, China, Costa Rica, Singapore, South Africa, and the United Kingdom. It has nearly 700 employees and a studio space spanning more than 400,000 square feet ideal for managed production shoots and co-creation with clients

So far this year, shares of Accenture have gained 9.3%, ahead of the 7.7% growth of the industry it belongs to, and 4.5% rally of the Zacks S&P 500 composite.

Buyout to Boost Accenture’s Digital Capabilities

The acquisition should complement Accenture’s existing digital marketing, content, media and commerce service offerings.

CreativeDrive’s in-house content studio model with proprietary CD Suite technology system eases out the key steps in the content-creation lifecycle. These features, in combination with Accenture Operations’ business expertise, should help in content creation, production and distribution. Also, CreativeDrive’s global content studios should boost Accenture Interactive’s ability to increase clients’ digital-commerce transformation.

Considering the coronavirus-induced effect of consumers shifting to online channels and online digital platforms, and the increasing demand for innovative content, the deal seems to be a strategic move on Accenture’s part to strengthen its foothold in the industry.

Zacks Rank and Key Picks

Currently, Accenture has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Republic Services RSG, IQVIA Holdings IQV and CoreLogic CLGX. All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for Republic Services, IQVIA Holdings and CoreLogic is 6.6%, 9.9% and 12%, respectively.

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Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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Republic Services, Inc. (RSG) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
CoreLogic, Inc. (CLGX) : Free Stock Analysis Report
IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report
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Zacks Investment Research