WWP buys digital-ad agency IM2.0 in fifth China acquisition of year
Deal part of the British advertising group's strategy to expand in fast-growing markets
WPP, the world's largest advertising company, is adding to its network in China, buying a digital advertising agency as part of its strategy to expand in the world's fastest-growing economies.
WPP bought IM2.0 through its VML operating company, which is part of the Young & Rubicam network, according to a person familiar with the matter, asking not to be identified because the transaction had not been announced yet. The deal is subject to regulatory approval.
China is WPP's third-largest market - behind the United States and Britain - with revenue, including associates, of US$1.4 billion and about 14,000 workers.
The London-based company is spending as much as £400 million (HK$4.9 billion) this year, buying digital advertising assets and companies in rapidly expanding markets such as Turkey, Brazil, India and Vietnam to counter slower growth in Europe and North America and capture new business from burgeoning economies.
IM2.0, which has offices in Beijing and Shanghai, creates online strategies and advertising campaigns. Its clients include Dell, Adidas, coffee maker Mondelez International and appliance manufacturer Qingdao Haier. It has a workforce of 230 and assets of about 200 million yuan (HK$254 million).
WPP's London-listed shares have risen 40 per cent this year. With the IM2.0 purchase, WPP has bought five Chinese companies this year, including market researchers Miaozhen Systems and Sinotrust International Information & Consulting Beijing.