Ketchum, the global marketing and corporate communications consultancy arm of Diversified Agency Services (DAS) division, a unit of Omnicom Group Inc. (OMC), has acquired a majority stake in India-based Sampark PR. The financial terms of the deal were not disclosed. Management stated that the acquisition will expand Ketchum’s footprints in South Asia.
As per the deal, the company’s executives — Tom Harrison (Chairman and CEO of DAS), Jon Higgins (Ketchum’s senior partner and CEO of international operations) and Robert Lorfink (CFO of Ketchum) will be inducted into Sampark’s board.
Post acquisition, the target firm will be renamed as Ketchum Sampark and will be jointly operated by Sampark’s director Bela Rajan and managing director N.S. Rajan. Employing more than 125 employees, Ketchum Sampark will provide financial and corporate communications, investor relations, issues and crisis management, technology, brand marketing, and infrastructure expertise to Indian clients and Ketchum’s global network of clients.
The company’s strategic acquisition of complementary companies with strong entrepreneurial management teams enables the expansion of its client base. In the fourth quarter of fiscal 2010, Ketchum acquired the majority stake in Maslov PR, the Moscow-based, full-service Russian public relations company.
Based in New York, Omnicom is one of the largest advertising, marketing and corporate communication companies in the world. Its services extend across four disciplines including traditional media advertising, customer relationship management, public relations and specialty communications.
The company faces stiff competition from its peers such as Interpublic Group of Companies, Inc. (IPG) and WPP plc (WPPGY). In the long term, the company’s profitability will improve, resulting from expansion of business and relationships in Asia, where operating conditions remain extremely favorable.
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