Advertising titan, WPP plc’s (WPPGY) wholly-owned subsidiary, tenthavenue recently agreed to acquire China-based Wisereach in partnership with GroupM; completion of the acquisition being subject to obtaining regulatory approvals.
Wisereach is a leading mobile marketing agency, founded in Beijing in 2009. Its client base includes big names as Audi, Dell Inc. (DELL), Michelin and Microsoft Corporation (MSFT).
In addition, XM Asia announced an agreement for acquiring a stake in Indonesia-based, Magnivate. The former is a unit of WPP’s wholly-owned operating subsidiary, JWT, while the latter primarily engages in providing digital strategy, social media communications strategy, rich media, online advertising, search marketing and e-marketing.
Magnivate was founded in 1983, and generated revenues of approximately IDR16 billion for the year ended 31 December 2011. Companies like Danone, Frisian Flag, Samsung and Unilever are among Magnivate’s well known clients.
Through these strategic acquisitions, WPPGY aims at expanding its operations in fast growing emerging markets and gaining access to vast untapped markets in those regions. Most of the acquisitions are given effect through the company’s wholly-owned subsidiaries.
The current Zacks Consensus EPS Estimates for WPP plc is $5.13 and $5.62 for the fiscal years 2011 and 2012, respectively. The estimates represent a year-over-year growth of 37.20% for 2011 and 9.52% for 2012. Estimate for the fourth quarter stands at $3.43 per share.
Based in Dublin, Ireland, WPP Group provides advertising and communications services worldwide. The company provides stiff competition to its peers like Interpublic Group of Companies Inc. (IPG), Omnicom Group Inc. (OMC) and Publicis Groupe SA (PUBGY.PK).
We currently maintain a Neutral recommendation on the stock.
To read this article on Zacks.com click here.
Zacks Investment Research
