Large IT Service Providers are using M&A to Expand Their Digital
Advertising and Design Service Capabilities

The frenzy continues as big-name acquirers continue to buy up as many digital innovation and design services firms they can get their hands on. Traditional advertising agencies, consulting firms, IT companies and other tech
companies are actively pursuing inorganic growth to build their digital and design capabilities. Despite the growing
number of acquisitions under their belts, these companies seem to have adopted DJ Khaled’s mantra of “another
one” as they continue to make acquisitions in the space like clockwork. As we enter the 2nd half of 2017, the digital
innovation and design services sector shows no signs of slowing down. Exactly how long can this acquisition spree
last before it begins to lose steam?

IT services providers are among the most active the space. We, at Pharus, observed two notable transactions this
month. On June 28, Accenture acquired mobile design and development firm Intrepid. The acquisition expands
Accenture’s’ mobile capabilities in design and app development. Earlier in the month, Deloitte acquired design
consultancy Market Gravity to grow their consulting business by strengthening their creative services around
innovative products and services.

Pharus maintains an active practice in the digital innovation and design services space, with notable transactions in
the sector. We look forward to speaking with you about our experience and thoughts on the sector.

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