WPP acquires German firm Commarco

Global media communications agency, WPP has bought German marketing firm Commarco as well as PR and digital assets from private equity firm Cognetas for an undisclosed sum.

Commarco owns several agencies including Scholz & Friends and communications agency deepblue networks. Its clients include well known brands like Siemens, Deutsche Bank, Vodafone PLC, Unilever among others.

The German agency had revenues of €132.9 million last year, with gross assets of €98.6 million, which puts the deal around €120 million and €150 million, according to industry insiders.

Speaking about the acquisition, Martin Sorell, chief executive, WPP told Financial Times, ''It's a strong agency … [with] a strong creative and planning reputation. It's one of the two biggest independents in Germany.''

Germany is WPP's third-largest market after the US and Russia, and is showing signs of growth along with Poland and Russia, said Sorrell.

He added that the agency will be kept separate but WPP will try to leverage its other services in Germany and round the world.

''Combining with WPP, the global number one, will provide a whole new universe of international possibilities, both for our clients and for our employees,'' said Frank-Michael Schmidt, co-CEO, Commarco.

Cognetas had acquired Commarco in 2003, when revenues were €69m, and since then the company's annual revenues has since almost doubled to €133 million.