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Omnicom Set to Acquire Brazilian Advertising Group ABC

According to a Reuters report, premier advertising services provider Omnicom Group Inc.OMC is likely to buy Grupo ABC - the largest Brazilian diversified advertising firm, for 1 billion reais ($270 million). The strategic move is intended to augment Omnicom's regional presence in Brazil, which arguably boasts one of the largest economies of Latin America.

Grupo ABC is a conglomerate of 15 different companies and focuses on three strategic pillars: Advertising, Branding Services and Content. Each of the member companies bring to the fore a common culture based on corporate values and goals and work in a multidisciplinary way to ensure diversity to the group.

Omnicom is concentrating on strengthening its business and expanding its client base globally through the acquisition of complementary companies. These accretive acquisitions have enabled the company to build up a diversified presence across the world. Additionally, Omnicom's lookout for more potential acquisitions improves its long-term growth potential.

Earlier, the company had announced the acquisition of U.K.-based brand and retail agency Haygrath by its subsidiary RAPP. Also, Omnicom's TBWA Worldwide acquired an independent German advertising agency Heimat, which will enhance Omnicom's portfolio. Omnicom's Adelphi recently acquired healthcare brand and research agency - The Planning Shop international (TPSi), which will likely provide numerous synergistic benefits to the company. We expect the company to witness higher revenues in the imminent future on the back of these acquisitions.

Omnicom is one of the largest advertising, marketing and corporate communications companies in the world. The company's business mix is well diversified geographically and benefits largely from the growing markets. In addition, the company's efforts in maintaining controlled expenses and strong global reputation are commendable.

Omnicom currently has a Zacks Rank #3 (Hold). Other stocks that look promising in the industry and are worth a look include Marin Software Incorporated MRIN and Publicis Groupe SA PUBGY , both carrying a Zacks Rank #2 (Buy) and Harte-Hanks Inc. HHS that carries a Zacks Rank #1 (Strong Buy).

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OMNICOM GRP (OMC): Free Stock Analysis Report

PUBLICIS GP-ADR (PUBGY): Free Stock Analysis Report

HARTE-HANKS INC (HHS): Free Stock Analysis Report

MARIN SOFTWARE (MRIN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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