Last week, advertising titan
WPP Group Plc.
) carried out twin acquisitions via its wholly owned companies,
Kantar and Ogilvy & Mather. While the former is engaged in the
information, insight and consultancy services of WPPGY, the latter
is the global marketing communications group of WPPGY.
Kantar agreed to acquire about 87% stake in France-based, Press
Index S.A. for EUR 6.81 per share. Press Index was founded in 1997
and generated EUR 17.5 million in revenue and held gross assets of
roughly EUR 12 million as on 31 December 2011. Kantar intends to
acquire the remaining 13% shares of Press Index, once it completes
the current stake acquisition.
Ogilvy & Mather acquired a 70% stake in Brazil-based leading
digital agency, Foster Informatica, Ltda for an undisclosed amount.
The acquisition enables WPPGY to leverage benefits from Foster's
solid client base including Monsanto, Bayer, Metro, Danone and
Foster was founded in 1993 and generated roughly R$5.0 million
in revenues as on 31 December 2011. Gross assets were approximately
WPPGY's acquisitions and investments are all aimed at expanding
the company's operations in fast growing emerging markets, thus
enabling access to vast untapped markets in those regions. In the
fiscal year 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 $5.65
and $6.31 for the fiscal years 2012 and 2013, respectively. The
estimates represent a year-over-year growth of 5.10% for 2012 and
11.52% for 2013.
This Dublin, Ireland-based advertising and communications
services provider 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, implying 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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