Point B acquires digital experience design studio TNG
Management consultancy Point B has acquired US-based TNG, a digital experience design studio, to boost its own offering to clients based across the US. The value of the deal was not disclosed. The divide between creative agencies and the wider consultancy industry has begun to close, with digital channels and changing consumer behaviour driving demand from businesses to supply clients a well-crafted digital offering, both at the back and front end.
The increased focus on achieving sales and marketing through digital channels has changed the way marketing firms operate. Recently, customer experiences and journeys, as well as social media, comparison sites and online reviews have come to play an increasingly integral role in sales – with many of the variables difficult to control and consumers increasingly happy to try new brands. The sales industry has subsequently become increasingly reliant on technology firms for the background implementation of customer journeys.
This overhaul of sales has also prompted consulting firms to expand their capabilities to include creative agency skillsets – merged with their own management, business and IT consulting capabilities – as their clients increasingly seek advisory services regarding back-end journey implementation. The combination, which is increasingly focused on marketing, offers a more holistic ‘one-stop-shop’ approach to client engagements.
Professional services firms PwC and Deloitte Digital have become particularly prolific in this manner, rapidly acquiring advertising and design outfits reportedly worth over $750 million and $1.6 billion respectively, while smaller firms increasingly struggle against the market dominance of the giants. Accenture, another major player in the digital consulting field, has also been highly active in the sector recently – planning to invest a further $1.8 billion in acquisitions in the coming years, on top of an already hefty M&A bill.
The latest purchase in this trend comes from Point B, a US-based management consulting firm with ten offices across the country, who have joined the growing feeding frenzy to pick up TNG for an undisclosed sum. The digital experience design studio is largely focused on developing brand strategies for the digital age, in which brand loyalty has becoming increasingly fickle. The studio, which is located in South Waterfront/John’s Landing neighbourhood of Portland, Oregon, and was founded by Doug New more than 23 years ago, has flourished to include global clients, including IBM, Samsung and HP.
Point B hopes the addition will boost its ability to manage the digital challenges faced by its clients facing ‘total business model redevelopment’ in the face of disruptive industry changes. Through the acquisition, Point B aims to deliver a broader ‘end-to-end’ service. For TNG, the acquisition ideally means broader scope for the firm’s services across Point B’s wider US network and client relationships, as well as additional resources to scale its operation internally. Finally, the deal sees Point B take up a position in TNG’s historic office building, which fits within the consulting firm’s wider ambitions for the region.
“The acquisition of TNG is not only a significant step forward for our customers, it’s great for our firm,” said Point B Chief Operating Officer EJ Blanchfield. “We took care in aligning our organization with a company that shares our values-driven culture and thoughtful approach to customer delivery. Our people are the brand at Point B, and the TNG acquisition extends that brand even further for our clients and communities.”
“I couldn’t be more proud to pass the TNG baton to such a great company,” said Doug New, Founder and CEO of TNG, who is leaving at the completion of the acquisition. “For 23 years, TNG has put great people, great work and great relationships at the center of our business, and Point B is like us in so many ways. It’s a rare thing when a business shift feels as smooth as this does, and I’m thrilled for the opportunity ahead for this combined team.”
