While financial terms of Accenture’s deal to acquire Droga5 last month were not disclosed at the time, Endeavor's recently filed Initial Public Offering prospectus with the SEC provides some details behind the transaction and the agency’s operations.
Endeavor's WME Dragon Holdings sold its 49% stake in Droga5 to an affiliate of Accenture LLP on March 29 for $233 million. The filing reported that the other 51% stake in the agency before the sale was held by an entity called “David5,” which was presumably controlled by agency founder David Droga.
The Endeavor filing didn’t say how much Accenture paid for the 51% stake that it didn’t own but assuming that it is valued proportionately at the same level as Endeavor’s piece, it would be around $242 million, putting a total estimated price tag for the agency paid by Accenture of $475 million.
The Endeavor filing also indicated that Droga5’s net revenues were down about 13% last year to $169.8 million while net income fell about 44% to $29.9 million.