Root Acquisition: Key Details, Impact, and What Comes Next

Accenture's acquisition of Root Inc. marks a significant step in enhancing its organizational change management capabilities. By integrating Root's creative and experiential approaches, Accenture aims to offer more effective solutions for strategy activation and cultural transformation. This move is poised to set a new standard in the industry, leveraging Root's expertise to drive transformational change at scale.

What Is Root?

Founded in 1995, Root specializes in Strategy Activation, engaging and aligning all organizational levels to implement and sustain strategies. Its core services include enhancing customer experience, facilitating technology adoption, unlocking talent, health transformation, maximizing operations, and managing organizational change. Root differentiates itself with unique visual tools like the Root Learning Map® and an interactive, discovery-based approach that fosters emotional and intellectual connections, ensuring lasting change and high client satisfaction.

Who Acquired Root?

Accenture is a global professional services company specializing in IT services and consulting. It delivers digital, cloud, and security solutions across various industries, including aerospace, banking, health, and retail. Key services encompass cloud computing, cybersecurity, data and AI, and digital engineering. Recognized as a leading management consulting firm, Accenture is known for its innovation and ability to help companies embrace change and drive growth through technology and consulting services.

When Was Root Acquired?

Accenture acquired Root Inc. on April 23, 2021. This acquisition occurred during a period marked by a heightened focus on digital transformation and organizational change, driven by the COVID-19 pandemic. Companies were increasingly seeking innovative solutions to adapt to new ways of working, making employee engagement and cultural transformation more critical than ever. This strategic move aligns with industry trends emphasizing the importance of creative and experiential approaches to drive transformational change at scale.

Why Was Root Acquired?

• Market Expansion: The acquisition of Root Inc. allows Accenture to expand its capabilities in organizational change management, particularly in engaging employees and accelerating strategic change. This complements Accenture's recent acquisitions in the Talent & Organization / Human Potential space, such as fable+, Cirrus, Future State, and Kates Kesler.
• Technology Integration: Root Inc.'s digital and experiential assets, including the Root Learning Map® experience, will be integrated into Accenture's existing offerings. These assets are designed to engage employees intellectually and emotionally, facilitating rapid and scalable transformational change.
• Competitive Advantage: By acquiring Root Inc., Accenture strengthens its position in the market for organizational change management. Root's unique methodologies and creative capabilities provide a significant competitive advantage, enabling Accenture to offer more comprehensive and effective solutions for transformational change. This acquisition also enhances Accenture's ability to connect people and technology, unlocking human ingenuity and driving enterprise-wide change.

Acquisition Terms

• Acquisition Price: The terms of the transaction were not disclosed.
• Payment Method: The payment method is not specified.
• Key Conditions or Agreements:
  • Root Inc. will join Accenture’s Talent & Organization / Human Potential team.
  • The acquisition aims to enhance Accenture's organizational change management capabilities with Root's experiential and digital assets.
  • Root's methodologies, such as the Root Learning Map® experience, will be integrated to engage employees and accelerate strategic change.
  • The acquisition complements Accenture’s recent acquisitions in the Talent & Organization / Human Potential space, including fable+, Cirrus, Future State, and Kates Kesler.

Impact on Root

The acquisition of Root Inc. by Accenture has led to significant changes in operations and management. Root has been integrated into Accenture’s Talent & Organization / Human Potential team, enhancing Accenture's organizational change management capabilities. This integration aims to leverage Root’s digital and creative assets, such as the Root Learning Map® experience, to engage employees more effectively in strategic changes. The management structure has also seen adjustments, with Root's leadership now collaborating closely with Accenture's existing teams to drive transformational change at scale.

In terms of product offerings and services, the acquisition has enriched Accenture's portfolio with Root’s unique methodologies and experiential tools. These additions are designed to engage employees both intellectually and emotionally, facilitating rapid and scalable change. Employee reactions have been positive, with Root's CEO, Rich Berens, expressing excitement about the new opportunities to impact more people globally. While specific customer reactions are not detailed, the enhanced capabilities and expanded service offerings suggest a favorable outlook for clients. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.