Accenture Completes Acquisition of Acquity Group

July 9, 2013 — Fusion DigiNet

accenture1Accenture has completed its acquisition of Acquity Group Ltd., the second-largest independent digital marketing company in the United States, which provides strategy, digital marketing and technical services to help companies enhance their brand experiences and eCommerce performance.

The acquisition strengthens and expands the broad range of digital marketing services that Accenture provides clients through acquityAccenture Interactive. Accenture paid $13.00 per outstanding American Depositary Share, each of which represents two ordinary shares, or a total of approximately $316 million in cash for Acquity Group.

“Acquity Group’s skills and capabilities in eCommerce and leading digital platforms such as Adobe and hybris will complement Accenture’s strengths in strategy, analytics, technology enablement and marketing operations,” said Brian Whipple, global managing director of Accenture Interactive. “Together, we are better positioned to blend the creative process with technology at scale and deliver transformational solutions that provide innovative and engaging customer experiences across channels.”

USA, New York, NY & Chicago, IL

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WPP to acquire a 49% stake in Heureka Group in Poland

June 6, 2013 — Fusion DigiNet

wppWPP‘s wholly-owned operating network VML, the digital marketing agency, is to acquire a 49% stake in Heureka Group, a Polish digital agency.

Heureka Group is a full-service interactive advertising agency specializing in digital advertising and social media campaigns. The Group consists of two main creative agencies, Heureka and Pride & Glory, and a proprietary social analytics tool called Brand Fibres.

Heureka Group was founded in 2008 by Michal Adamkiewicz-Wolniak, Joanna Adamkiewicz-Wolniak, Dariusz Andrian, Piotr Friedberg and Dawid Szczepaniak, Clients include Orange, Danone Group, Philips, Nestle, Microsoft, BRE Bank and PZU. Heureka employs 150 people in offices in Warsaw and Krakow.

Heureka Group’s unaudited revenues for the year ended 31 December 2012 were approximately Euro 6.8 million, with gross assets at the same date of approximately Euro 2.4 million. Under the terms of the acquisition, WPP has the option to acquire majority ownership at a future date. Following the transaction, Heureka Group will rebrand as VML.

UK, London & Poland, Warsaw & Krakow

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WPP announces results for the year ended 31 December 2012

May 2, 2013 — Fusion DigiNet

wppWPP has today posted its annual report and accounts for the year ended 31 December 2012.

A copy is available to view on WPP’s website www.wpp.com.

  • Read the letter to shareholders here
  • Full financial statements are available here

Highlights

  • Reported billings were down slightly at £44.4 billion, but up 1% in constant currencies.
  • Revenues were up 3.5% to £10.4 billion and up almost 6% in constant currencies. Including 100% of associates, revenue is estimated to total 2.6 billion ($20.0 billion).
  • Headline PBIT was up over 7% to £1.531 billion against £1.429 billion in 2011 and up over 11% in constant currencies.
  • Headline PBIT margin was 14.8% in 2012 against 14.3% in 2011 (surpassing the historical pro forma high of 14.3% in 2008) On gross margin, the headline PBIT margin was 16.1%, up 0.6 margin points on 2011.
  • Reported profit before interest and tax rose over 4% to £1.311 billion from £1.258 billion. Headline EBITDA increased by 7% to £1.756 billion.
  • Headline profit before tax was up over 7% to £1.317 billion and reported profit before tax was up over 8% to £1.092 billion.
  • The share price is up by 31% in 2012 to 888.0p at year end. (2013, 16% since 1st January).
  • Dividends increased by almost 16% to 28.51p (a record level).
  • Diluted headline earnings per share were up over 8% to 73.4p (an all-time high) and diluted reported earnings per share decreased by over 2% to 62.8p, reflecting the release of prior year tax provisions in 2011.
  • Free cash flow strengthened to £1.094 billion in the year, over £1 billion for the second consecutive year.
  • Net debt averaged £3.2 billion in 2012, up £0.4 billion at 2012 exchange rates, and net debt at 31 December 2012 was £2.8 billion, £0.3 billion higher than 2011, reflecting increased spending on acquisitions (chiefly AKQA) and higher dividends.
  • Average net debt, was around 1.8 times headline EBITDA in 2012 compared with 1.7 times in 2011, and well within the Group’s current target range of 1.5-2.0 times.
  • In September 2012, the Group successfully issued $500 million of 10-year bonds at a coupon of 3.625%, together with $300 million of 30-year bonds at 5.125%.
  • So far, in the first three months of 2013, average net debt was up approximately £0.3 billion at £3.0 billion against £2.7 billion for the same period in 2012, at 2013 exchange rates.
  • With a current equity market capitalisation of approximately £13.0 billion, the total enterprise value of WPP is approximately £16.3 billion, a multiple of 9.1 times 2012 headline EBITDA.

UK London

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Publicis unveils €3 billion acquisition plan

April 26, 2013 — Fusion DigiNet

PublicisAccording to reporting by Campaign, Publicis Groupe unveiled a six-year growth plan at an event for investors at LBi London’s offices on Tuesday. Jean-Michel Etienne, the chief financial officer of Publicis Groupe, said that “the envelope [for acquisitions] will be €500 million each year.” LBi is a digital communications agency acquired by Publicis last year valuing LBi at approximately €416 million.

Deals are likely to focus on digital technology businesses in markets including Brazil, Russia, China, Turkey and India as well as countries in South East Asia.

Publicis has been highly acquisitive over the last few years. See related articles below.

France, Paris & UK, London

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Next Fifteen Communications Group acquires Connections Media

April 9, 2013 — Fusion DigiNet

next15Next Fifteen Communications Group plc has acquired an 80% stake in Connections Media LLC, a Washington DC based, full service digital agency specialising in politics and public affairs.

Connections Media has been acquired from Jonah Seiger (CEO & founder), Phil Lepanto (Chief Technology Officer) and Andy Weishaarcmlogo (Chief Creative Officer). The initial consideration is $1.85 million, paid in cash at completion. Deferred consideration may be payable over the course of the next 5 years subject to the achievement of revenue and profit performance targets. Any deferred consideration that becomes payable will be satisfied by cash or up to 25% in Next Fifteen shares, at the option of Next Fifteen.

 

For the year ended 31 December 2012 Connections Media had revenues of $2.65 million and profit before tax of $0.85 million. The gross assets at 31 December 2012 were $1.15 million. The business will be acquired with $0.55 million of net working capital.

Seiger, Lepanto, Weishaar and the Connections Media design, development and client services leadership team will remain with the company post-acquisition, with Seiger serving as CEO and Operating Manager.

“Connections Media is a great addition to the Group. As political and corporate worlds becomes more social and digital, the products and services offered by Connections Media become increasingly valuable. Being able to offer such services helps us accelerate our transition from being a PR only group into a full service digital and social communications group,” said Tim Dyson, CEO of Next 15.

UK, London & USA, Washington, DC

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Ogilvy & Mather acquires majority stake in South African mobile marketing agency Strike Media

March 1, 2013 — Fusion DigiNet

ogilvyWPP‘s wholly owned subsidiary Ogilvy & Mather has acquired a majority stake in Strike Media Proprietary Limited in South Africa.

Strike is a mobile marketing and technology agency delivering customised mobile strategy, campaigns,design and development services to clients across the financial, retail, consumer and telecommunications sectors.

Established in 2003 by Russel Stromin, Strike is headquartered in Cape Town and employs 20 people. Key clients and partners include Vodacom, MTN, Cell C and Metropolitan Health.

Strike’s revenues for the financial year ended 29 February 2012 were approximately ZAR 16 million with gross assets as at the same date of approximately ZAR16 million.

UK, London & South Africa, Cape Town

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Y&R acquires majority stake in Turkish creative digital agency C-Section

March 1, 2013 — Fusion DigiNet

y&rWPP‘s wholly-owned operating company, Y&R, has acquired a majority stake in CS Reklam Hizmetleri Sanayi Ve Ticaret A.Ş., trading as “C-Section“, a creative digital advertising agency based in Istanbul, Turkey.

Founded in 2004, C-Section specialises in creating microsites, apps, digital campaigns and video csection-logo2production/virals for the Turkish market. The agency employs approximately 40 people and clients include Coca-Cola, Vodafone, and TEB BNP Paribas.

C-Section’s unaudited revenues for the year ended 31 December 2012 were TRY 7.5million, with gross assets as at the same date of TRY 3.0million. The agency will retain its distinct independent identity and will not be merged with Y&R Istanbul.

UK, London & Turkey, Istanbul

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WPP reports better-than-expected full-year 2012 results

March 1, 2013 — Fusion DigiNet

Advertising giant WPP has reported better-than-expected full-year 2012 results.wpp

Full preliminary WPP results

Highlights

  • Reported billings decreased slightly to £44.4bn, primarily reflecting the strength of the £ sterling, although up 1.6% in constant currency driven by leadership position in net new business league tables
  • Revenue growth of 3.5%, with like-for-like growth of 2.9%, 2.9% growth from acquisitions and minus 2.3% from currency
  • Like-for-like revenue growth in all but one region, characterised by particularly strong growth in Asia Pacific, Latin America, Africa and the Middle East and all but one sector (public relations and public affairs), with strong growth in advertising, media investment management and specialist communications
  • Like-for-like gross margin growth at 2.4%, with slower growth in the Group’s consumer insight businesses in the mature markets of North America, the United Kingdom and Western Continental Europe
  • Headline EBITDA growth of 7.0% giving 0.5 margin point improvement, with operating costs (+2.8%) rising less than revenues
  • Headline PBIT increase of 7.1% with PBIT margin rising by 0.5 points to 14.8%, surpassing the previous historical pro forma high of 14.3% achieved in 2011
  • Exceptional gains of £102 million on sales of stake in Buddy Media and New York property
  • Exceptional restructuring charges of £93 million taken chiefly in respect of Western Continental European businesses and IT infrastructure
  • Gross margin margins, a more accurate competitive comparator, up 0.6 margin points to an industry leading 16.1%
  • Headline diluted EPS up 8.4% and reported diluted EPS down 2.6% (reflecting last year’s exceptional release of corporate tax provisions), with 15% higher final ordinary dividend of 19.71p and full year dividends of 28.51p per share up 15.9%
  • Average net debt increased £373m (13%) to £3.203bn reflecting increased spending on acquisitions (chiefly AKQA) and higher dividends, partly offset by relative improvement in working capital
  • Creative excellence recognised by the award, for the second consecutive year since its inception, of the Cannes Lion for the most creative Holding Company
  • Over last two years alone headline diluted earnings per share up almost 30%, dividends per share up 60% and the dividend pay-out ratio increased from 31% to 39%

UK, London

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Match Marketing Group acquires Marketing Drive and WELD media

January 14, 2013 — Fusion DigiNet

Match Marketing Group, a Canadian shopper marketing agency, has acquired Norwalk, CT-based Marketing Drive, along with its digital subsidiary, WELD media. The agencies are owned by Chicago-based River North Group and specialise in retail, digital, shopper marketing and consumer promotion services.

This is Match’s fifth acquisition this year. This summer, Match acquired three marketing promotion and brand engagement agencies – Action Marketing Group, OSL Marketing Group and Ignite Activation. The addition of Marketing Drive’s offices in Norwalk, Boston, Chicago, New York and Bentonville will build upon Match’s existing office in Boulder and help establish a strong U.S. footprint for the company.

“Our goal is to quickly become the top, full service shopper marketing agency in North America,” said Brett Farren, Match Marketing Group president and CEO. “Bringing a top ten U.S. shopper marketing and digital agency into the fold provides us with a strong platform in place to pursue new opportunities, new clients and added market success.”

Canada, Toronto & Norwalk, CT

 

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TBWA acquires Indian digital company Magnon

January 11, 2013 — Fusion DigiNet
tbwaTBWA has acquired Magnon Group, one of India’s largest digital agencies. The acquisition includes Magnon Solutions, the domestic digital agency, and Magnon International, a digital outsourcing agency that serves clients across five continents.

Founded in 2000 by Vineet Bajpai , Magnon employs nearly 150 professionals between Mumbai and New Delhi.magnon

Magnon offers clients the full spectrum of digital services, including graphic design for web and mobile; digital marketing; search and social media optimization; bespoke technology applications development; online brand strategy consulting; eCommerce solutions; and mobile sites and apps development.

Effective immediately, Magnon will become part of the TBWA Group of companies in India. The digital agency, Magnon Solutions, will join TBWA’s global Digital Arts Network (DAN) and the digital outsourcing company, Magnon International, will become part of E-Graphics and an accelerator for DAN’s production offering.

“We are delighted to join forces with Magnon Group,” said Keith Smith , President – International at TBWA Worldwide. “We’ve been extremely impressed with both their digital capabilities and the strength of their management team. Globally, TBWA is building a strong, integrated digital network and we’re confident that Magnon Group will deliver the expertise and talent we need to deliver innovative work and added value for our clients in India.”

Bajpai, who will continue in his role as Founder and CEO of Magnon, said, “Being a part of TBWA is an ambition fulfilled. TBWA’s global reach and excellence will provide Magnon with the right platform towards becoming a market-leading digital agency in India and the region. And TBWA’s empowering culture allows us to retain our adaptability and entrepreneurial fabric.”

TBWA is part of Omnicom Group Inc.

USA, New York, NY & India, Mumbai

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