WPP Expands Digital Arm - Analyst Blog
June 03 2011 - 1:01PM
Zacks
Advertising titan WPP plc. (WPPGY) announced
that it has acquired 70% stake in Brazil based F.biz Ltda. The
financial terms of the transaction were not disclosed.
Founded in 1999, F.biz Ltda. is the largest independent digital
advertising agency in Brazil. Employing 200 people, F.biz serves
clients such as Campari, Itaú, Vivo and NetShoes.
With this acquisition, the company is well placed to fulfill its
objective of expanding its capabilities in the digital, direct and
interactive disciplines. WPP plc will also extend its footprint in
rapid developing markets.
As a Group, WPP plc generates revenues of over R$1.1 billion and
employs over 4,500 people in Brazil. Besides, Brazil is WPP's
eighth largest market.
Earlier, the company’s digital arm had acquired a minority stake
in technology solutions provider nPario Inc. for US$5 million.
nPario solutions and applications analyze large volumes of data
for marketing. The customers of nPario include
Microsoft (MSFT), Yahoo (YHOO),
Adobe (ADBE), Oracle (ORCL) and
SAS.
Both the companies entered into a strategic partnership,
enabling integration of online and offline data of WPP into the
nPario platform. Consequently, they will aid marketers in improving
audience insight.
Based in Dublin, Ireland, WPP together with its subsidiaries
provides advertising and communications services worldwide. The
Group faces competition from its peers like Interpublic
Group of Companies Inc. (IPG), Omnicom Group
Inc. (OMC), and Publicis Groupe SA.
We believe that WPP Plc continues to focus on new and fast
developing markets, new media and consumer insights. Further, the
company’s pricing power helps in improving margins and sustaining
future profit growth.
We currently have an Outperform recommendation on WPP plc,
supported by Zacks #2 Rank (short-term Buy).
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