IPG on Acquisition Fling, Eyes EU - Analyst Blog
February 02 2012 - 12:10PM
Zacks
Interpublic Group (IPG), one of the world's
leading organizations of advertising agencies and marketing service
provider, recently announced acquisition of FUSE, a digital and
interactive agency based in the UK. With this acquisition, FUSE
will now add strength to Interpublic’s GolinHarris network (GH
International); being a part of the company’s current digital and
interactive capabilities.
The advertising industry has become even more competitive and
dynamic with rapid propagation of media channels and acceleration
of interactive technology development.In order to withstand the
competitive pressures, big banners like Interpublic group are
needed to gear up for addressing more widespread mass audiences in
a cost-effective way.
In such a scenario, FUSE acquisition is anticipated to
significantly strengthen digital, interactive and creative
offerings. The added capabilities will allow optimal and affordable
solution to its clients, designing a customized mix of advertising
and marketing communications services purposefully.
FUSE has been successfully blending the art of design with the
power of technology to create unique digital experiences since
2004. Its offices in London and San Francisco serve clients, such
as Unilever, Bissell, Tia Maria, Top Trumps and Dove. GolinHarris
(GH), on the other hand addresses the increasing influence of
digital and social media in communications.
The agency’s new g4 model with dedicated specialists --
strategists, creators, catalysts and connectors -- are embedded in
one seamless package delivering value, while strengthening client
relationship.
FUSE will merge its employees and operations with GolinHarris'
offices in London but will retain its name. FUSE’s founders Doug
Ayres, Simon Hobbs and Jon Meggitt will lead the company and report
to Jonathan Hughes, president, GH International. The terms of the
deal were not yet disclosed.
Few days earlier, Interpublic Group also announced the
acquisition of a leading German Consumer Lifestyle Agency, Nicole
Weber Communications (NWC), which has offices in Hamburg and
Munich. With this acquisition, NWC also became a part of the IPG’s
GolinHarris network; adding new resources to help sustain the
agency’s strong growth trajectory.
Since 1996, NWC specializes in consumer public relations and
lifestyle marketing. Their strong consumer lifestyle capabilities
will complement GH International’s existing financial and corporate
communications practices in Frankfurt. The acquisition will
strengthen IPG’s future growth strategy in Europe, expanding their
German market share while teaming up with NWC.
On the other hand, NWC has been serving major national and
international brands, including Henkel Cosmetics, Renault, Asos.de,
Coral Mexx, Pringle of Scotland, Campari and Hendrick's Gin, among
others. With this acquisition, these clients will be able to expand
their global reach and access to higher level to creativity and
innovation.
Interpublic Group continues to look for strategic investments in
order to diversify across emerging markets and capitalize on
technological collaboration/integration across agencies. We believe
such acquisitions will position the company for future growth and
profitability, challenging the cutthroat business environment.
IPG delivered strong organic revenue growth during the third
quarter of fiscal 2011 driven by a strategic business mix, across
all marketing disciplines, across domestic as well as major
international economies. The company directly competes with its
peers, such as Omnicom Group Inc. (OMC), Publicis
Groupe SA and WPP plc (WPPGY).
INTERPUBLIC GRP (IPG): Free Stock Analysis Report
OMNICOM GRP (OMC): Free Stock Analysis Report
WPP GRP PLC (WPPGY): Free Stock Analysis Report
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