WPP Group to acquire digital agency AKQA
21 Jun 2012
WPP Group, the world's biggest advertising agency, is acquiring AKQA, one of the well-known digital agencies in the world, whose clients include Google, Nike, Diageo, Unilever among others.
The proposed deal comes less than a week after its US subsidiary, New York-based James Walter Thompson acquired a 51 per cent stake in India's leading digital services agency Hungama Digital Services, for an undisclosed sum. (See: JWT acquires controlling stake in Hungama Digital Media Entertainment)
Last week, its other US subsidiary Ogilvy & Mather acquired a minority stake in Slovak Republic-based Communication Group AS, for an undisclosed sum.
Dublin, Ireland-based WPP did not disclose the financial terms of the deal, but said that the agreement valued the privately held company at about $540 million, making it one of the largest acquisitions of a digital ad agency.
Formed through the 2001 merger between London-based AKQA New Media, San Francisco-based Citron Haligman Bedecarré, Washington, DC-based Magnet Interactive and Singapore-based The AndInc, AKQA is 80 per cent owned by private equity firm General Atlantic and the remaining by the management of the company.
General Atlantic had acquired the stake in 2007 for reportedly between $200 million and $250 million.
AKQA provides integrated digital communications campaigns, spanning social media, mobile, interactive experiences, gaming and content creation. It clients also include Delta, EDF, GAP, Microsoft Xbox, Target, and Virgin Money, among many others.
