Wunderman, the largest global digital agency and an integral part of WPP plc (WPPGY), recently acquired a majority stake in Phantasia, the most effective digital marketing agency in Peru. This investment will boost Wunderman’s capabilities and is in line with its expansion strategy. Post-acquisition, Phantasia will be renamed Wunderman Phantasia. However, WPP shares remained relatively flat despite such an encouraging announcement as overall market sentiment remained tepid.
The strategic move by the company is aimed to invest in the fast evolving digital sector and provide clients with the assets they require in these developing markets. Phantasia has received quite a few prestigious awards in the past with an experienced management team. Coupled with the strong network of Wunderman, it is likely to increase the value offering of innovative marketing products and services to its clients. This acquisition is in line with WPP’s inorganic growth strategy and is likely to augment its revenues in the long term.
In the last reported quarter, WPP completed 55 deals worldwide across all the business segments. Of these, 31 acquisitions and investments were made in new markets and 44 in quantitative and digital. The attractive acquisitions coupled with continued focus on growth are likely to improve WPP’s leading position in the market.
Dublin, Ireland-based WPP, together with its subsidiaries, provides advertising and communication services worldwide. The company operates through a number of established global, multinational and national advertising and marketing services companies.
WPP currently carries a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look in the industry include FTI Consulting, Inc (FCN), YuMe, Inc. (YUME) and The Hackett Group, Inc (HCKT), all holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment