GLOBAL – JULY 4, 2012: World’s largest advertising group WPP ramps up its digital assets as it took an agreement to buy one of the biggest independent digital agencies, AKQA.
WPP seems to be on a roll in taking companies under its umbrella this year. In April 2012, it bought 35% interest in retail marketing solutions specialists Barrows, 100% of the Denver-based digital applications specialist EffectiveUI.
AKQA is not the first digital agency that WPP has acquired in 2012 as it bought Vietnam-based full service digital agency Who Digital in March while WPP subsidiary JWT Singapore snapped a majority stake in Mumbai-based Hungama Digital Services Private Limited in June. Also on the same month, the company acquired two Brazillian digital agencies in two days with WPP’s global interactive marketing agency Possible Worldwide taking a 70% stake in Gringo and F.biz, which will be poised as an independent digital agency within WPP Digital.
The company is 80 percent owned by global private equity firm General Atlantic and is reported to be selling AKQA at $540 million. The deal is subject for regulatory approval.
Led by founder and CEO Ajaz Ahmed and chairman Tom Bedecarré, AKQA will be an independent and stand-alone brand within WPP.
“We are delighted to preserve AKQA’s independent culture and maintain focus on serving our clients," Bedecarré commented.
With the acquisition comes the formation of WPP’s Silicon Valley investment WPP Ventures which will be led by Bedecarré. According to the press statement, the unit "will explore new digital investment opportunities for WPP as a whole".
The San Francisco-based agency has had gross assets of $282 million as of December 2011 and forecasts revenues of around $230 million in 2012. AKQA’s clients include Google, Microsoft Xbox, Nike, and Unilever among others.
Founded in 2011, the agency has had impressive credentials in providing integrated digital communications campaigns, spanning social media, mobile, interactive experiences, gaming and content creation.
"We have admired their creativity and technological skills for a long time along with their outstandingly effective and award-winning work for clients," said WPP chief executive Sir Martin Sorrell.
