Accenture announced Wednesday afternoon that it is buying ConcentricLife, a 2023 MM+M Agency 100 honoree. ConcentricLife will become a part of Accenture Song, the consultancy’s tech-powered creative arm, and support its work on behalf of life sciences clients.
Completion of the $245 million cash deal is subject to customary closing conditions, including receipt of regulatory clearance.
“We recognize and value the position ConcentricLife has established as a leading healthcare marketing agency and our mutual commitment to healthcare providers, patients, and consumers with a focus on health outcomes,” Accenture Song CEO David Droga said in a statement. “We believe that together with ConcentricLife we will create a powerful capability to shape the future of health experiences and provide a truly compelling proposition for our clients.”
Founded more than two decades ago, ConcentricLife is based in New York and has more than 270 employees. Earlier this year, Concentric Health Experience and Scout Health, both owned by marketing services giant Stagwell, merged to form ConcentricLife. The combined entity unifies marketing expertise focused on the pharma, rare disease and wellness spaces.
ConcentricLife will bolster Accenture Song’s operations in the markets where it already boasts a substantial presence, including Atlanta, Chicago, Fort Lauderdale, San Diego and London.
In the deal, Accenture acquires a company on an upward trajectory. ConcentricLife posted strong numbers in 2022, growing revenue 7% to an MM+M-estimated $80 million. Two of the agency’s higher-profile assignments are Novo Nordisk’s obesity franchise and Alnylam Pharmaceuticals’ ATTR franchise. ConcentricLife also works on Mindera Health’s digital skin analytics and CeQur’s wearable insulin patch.
In a phone interview with MM+M following the announcement, ConcentricLife CEO Ken Begasse, Jr. said the deal, which started in earnest with negotiations a few months ago, will provide scale for the firm to better assist its life sciences clients.
“There is a need for a more connected human experience in health and partnering with Accenture Song makes it a reality for our clients,” he said. This acquisition makes us more valuable to our clients than we’ve ever been and that’s what we want to be: the most relevant partner so our clients can be the most relevant brand to their customers.”
Begasse acknowledged that while the medical marketing industry has continued to embrace consolidation, noting that many mergers have resulted in agencies working with private equity backing or as part of a larger holding company, the tie-up with Accenture is more unique in nature.
Going forward as part of Accenture, Begasse said he is eager to connect the content creation in its marketing to the brand aspirations all the way through the enterprise level. This will be especially important, he noted, as marketers engage with emerging technologies like generative AI and machine learning.
Editor’s note: This story has been updated with commentary from ConcentricLife.