Last week, Ireland-based advertising major,
WPP Group Plc.
) announced the acquisition of a Canadian consultancy firm,
Ascentum Inc. Financial terms of the transaction were not
The acquisition was consummated through the company's public
relations and public affairs firm, Hill+Knowlton Strategies Canada.
The addition of Ascentum to the company's portfolio is in line with
WPPGY's strategic objective of expanding its reach in emerging
Ascentum was founded in 2003 and is based in Ottawa, Canada. The
acquired assets bring with it a solid client base including
governmental bodies, business and non-profit organizations.
Acquisitions have been WPPGY's primary tools for expansion in
new markets. Of some of the recently announced transactions, the
agreement for acquisition of assets of Turkey-based fully
integrated company, Manajans/JWT by WPPGY's affiliate JWT and
Possible Worldwide's majority stake acquisition in full service
digital marketing agency Fortune Cookie (UK) Limited deserve
In 2011, WPPGY made roughly 24 acquisitions in new markets, 32
in new media and 8 in consumer insight.
The current Zacks Consensus EPS Estimates for WPP plc are $5.62
and $6.29 for years 2012 and 2013, respectively. The estimates
represent a year-over-year growth of 4.52% for 2012 and 11.88% for
WPPGY provides advertising and communications services and
competes with other industry players including
Interpublic Group of Companies Inc.
Omnicom Group Inc.
Publicis Groupe SA
We currently maintain a Neutral recommendation on WPPGY. The
stock also bears a Zacks #3 Rank, which implies a short-term (1-3
months) Hold rating.
INTERPUBLIC GRP (IPG): Free Stock Analysis
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WPP PLC (WPPGY): Free Stock Analysis Report
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