WPP's JWT India to secure majority stake in Encompass
28 Jan 2008
Mumbai: JWT, the wholly owned advertising arm of global advertising major WPP will acquire, subject to regulatory approval, a majority stake in independent events and promotions agency Encompass Events Private Limited.
According to sources, JWT is looking at netting a 60 per cent stake, though no financial details of the transaction were forthcoming.
According to reports, the acquisition is awaiting FIPB approval and is expected boost JWT in its below-the-line activities, which is an increasingly key area for brands vying to enhance consumer engagement.
According to sources, talks have been in progress between the two companies for over a year, and hinge on leveraging multiple synergies between the two, including a 50 per cent common clientele.
DNA India reported Colvyn Harris, CEO, JWT India, as confirming the development, and quoted him as saying, "Encompass is India's leading brand activation agency. We've done some fabulous work with them. They have a repertoire of services which our clients are keen to use as part of their marketing mix."
Founded in 1996 by Roshan Abbas and Sukrit Singh, Encompass employs 240 people and is based in New Delhi with offices in Mumbai, Bangalore, Chennai, Kolkatta, Hyderabad and Singapore. The agency's clients include Accenture, Ford, GlaxoSmithKline, Hewlett-Packard, HSBC, Microsoft, National Geographic Channel, Nokia and Pepsi.
A press release on it's the WPP website said that Encompass's unaudited revenues for the year ended 31 March 2007 were Rs206 million and gross assets Rs104 million. According to the company, the investment continues WPP's strategy of developing its networks in fast growing markets and sectors.
