Grey Group, advertising and marketing agency of global communications services company WPP plc (WPPGY), recently penned an agreement to acquire a majority stake in Circus Peru S.A., the largest independent advertising agency in Peru, for an undisclosed sum. Post-acquisition, the regional division of Grey Group will be integrated into the Circus group of companies and the organization will be renamed as Circus Grey.
Headquartered in Lima, Peru, Circus operates as a full-service, integrated marketing company serving diverse clients in the Latin America region. It was adjudged as the third most effective agency office in the world by the 2013 Global Effie Index Ranking that ranks the marketing communications industry’s most effective companies across the globe.
The acquisition will enable Grey Group to gain a strong foothold in the Latin American region. On the other hand, by partnering with Grey Group, Circus will gain an unprecedented access to sophisticated data analytics and cutting-edge technology of its parent company WPP.
WPP has been on an acquisition spree lately, completing over 20 acquisitions worldwide across the spectrum since Jan 2014. Of these, 13 acquisitions and investments were made in new markets and 16 in quantitative and digital industries.
WPP seeks to increase the share of digital revenues in its total sales to 40–45% in the next 5 years, up from its current share of about 35%. Looking ahead, WPP seems poised to maintain its competitive position and promote its operations by continuing to exploit inorganic growth strategies.
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 Sizmek Inc. (SZMK), Marin Software Incorporated (MRIN) and Coupons.com Incorporated (COUP), each carrying a Zacks Rank #2 (Buy).