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

CMOs will outspend CIOs on IT in 2017 (Gartner). Consequently, IT consultancies are actively looking togrow and improve their digital and design capabilities. Global spending on digital transformation
technologies is expected to reach $2.1B by 2019 (Intl. Data Corp.) Given this phenomenon, the largest IT
consulting companies are bumping into one another to gain a competitive advantage over their

In 2016, some of the biggest players including Accenture, IBM, Cognizant, and Deloitte made major
acquisitions. For example, IBM acquired three creative design agencies to enhance their UX department
over the span of one week in February 2016. Since then, the acquisition trend has shown no signs of
ebbing as Pharus has seen multiple deals from consulting companies seeking to gain a competitive edge
last month.

Two notable transactions occurred when Capgemini, a leading consulting IT services company,
announced the acquisitions of Itelios and Idean. Itelios is a consulting firm specializing in connected
commerce while Idean specializes in digital strategy and user experience (Pharus advised Idean on the
transaction). Both acquisitions will enhance Capgemini’s end-to- end digital and design services to its

By wpteam