Grey Group, advertising and marketing agency of global
communications services company
), recently penned an agreement to acquire a majority stake in
Circus Peru S.A., the largest independent advertising agency in
Peru, for an undisclosed sum. Post-acquisition, the regional
division of Grey Group will be integrated into the Circus group of
companies and the organization will be renamed as Circus Grey.
Headquartered in Lima, Peru, Circus operates as a full-service,
integrated marketing company serving diverse clients in the Latin
America region. It was adjudged as the third most effective agency
office in the world by the 2013 Global Effie Index Ranking that
ranks the marketing communications industry's most effective
companies across the globe.
The acquisition will enable Grey Group to gain a strong foothold in
the Latin American region. On the other hand, by partnering with
Grey Group, Circus will gain an unprecedented access to
sophisticated data analytics and cutting-edge technology of its
parent company WPP.
WPP has been on an acquisition spree lately, completing over 20
acquisitions worldwide across the spectrum since Jan 2014. Of
these, 13 acquisitions and investments were made in new markets and
16 in quantitative and digital industries.
WPP seeks to increase the share of digital revenues in its total
sales to 40-45% in the next 5 years, up from its current share of
about 35%. Looking ahead, WPP seems poised to maintain its
competitive position and promote its operations by continuing to
exploit inorganic growth strategies.
Dublin, Ireland-based WPP, together with its subsidiaries, provides
advertising and communication services worldwide. The company
operates through a number of established global, multinational and
national advertising and marketing services companies.
WPP currently carries a Zacks Rank #3 (Hold). Other stocks that
look promising and are worth a look in the industry include
Marin Software Incorporated
), each carrying a Zacks Rank #2 (Buy).
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