IPG Teams up with FRUKT - Analyst Blog
March 07 2012 - 3:45AM
Zacks
Interpublic Group of
Companies Inc. (IPG) announced the acquisition of
London-based FRUKT Communications, one of the world's leading
strategic and creative music and entertainment
agencies. The acquisition is primarily conducted by
Octagon, Interpublic Group's sports and entertainment leader with a
view to strengthen Octagon's industry leadership in the global
entertainment marketing business while expanding its global
reach.
Octagon’s ongoing investment in the
entertainment and music space over the past several years have
successfully offered clients a unique blend of Sports formula with
consumer insights and creative thinking. This FRUNKT
acquisition is anticipated to add tremendously to Octagon's
comprehensive entertainment marketing services and fast track the
group’s international growth and diversification into broader
entertainment sectors. The terms of the transaction were not
disclosed.
Established in 2001, FRUKT has been
upholding its commitment toward consumer passion for music and
entertainment platforms—serving the leading brands such as
Coca-Cola, Southern Comfort, Diesel and Starwood Hotels. With this
acquisition, FRUKT will immediately start collaborating with the
existing Octagon Entertainment Group entities while retaining its
unique culture and brand.
The ‘great fit’ pairing of FRUKT
team with IPG’s Octagon is anticipated to offer highly-disciplined,
strategic and creative counseling and activation services to the
corporate sector. With smarter aim and approach of resolving
business challenges, the novel partners have planned to leverage
the world’s passions for music and entertainment, thereby ensuring
growth for both the co founders. The mutual benefits of combining
Octagon's global networks across markets and sectors with that of
FRUKTS strong heritage of evolution in music will no doubt create
ripples across global entertainment marketing campaigns.
New York-based, Interpublic Group
of Companies Inc. together with its subsidiaries provides
advertising and marketing services worldwide. The company
directly competes with its peers, such as Omnicom Group
Inc. (OMC), Publicis Groupe SA (PUBGY)
and WPP plc (WPPGY). The company’s subsidiary,
Octagon, is the world's largest sponsorship consulting practice--
influencing a consumer spending budget of around $3 billion
annually in athlete & personality representation sponsorship
category. On the other hand, FRUKT is a creative communications
agency, engaged in creation and delivery of entertaining ideas that
connect people with brands through both live and digital
experiences
Our long-term Outperform
recommendation for IPG is supported by Zacks #2 Rank, which
translates into a short-term Buy rating (1-3 months).
INTERPUBLIC GRP (IPG): Free Stock Analysis Report
OMNICOM GRP (OMC): Free Stock Analysis Report
PUBLICIS GP-ADR (PUBGY): Free Stock Analysis Report
WPP GRP PLC (WPPGY): Free Stock Analysis Report
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