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Leading communications firm Ketchum, a division of Omnicom Group Inc (OMC - Analyst Report), recently acquired German public relations (PR) agency Brandzeichen for an undisclosed amount. Brandzeichen, which has expertise in lifestyle, communications and social media, will continue to operate under its existing brand and team. Ranked by Pfeffers PR Ranking 2012 as the leading lifestyle agency, it serves a wide range of industries like beauty, luxury, automotive, and food and beverages.

The Brandzeichen acquisition is a strategic move by Ketchum, which is looking to expand its already-strong brand communications offering and deliver superior client service. Brandzeichen also has a similar talent retention policy as Ketchum.

The acquisition is a win-win situation for both these companies. Ketchum is one of the most diverse PR agencies in the world and has built brands. With the acquisition of a creative brand agency in Germany, Ketchum will likely strengthen its position in the fourth largest economy. The acquisition will also facilitate Ketchum to enhance its expertise and geographic coverage for its clients.

The acquisition should also be accretive for the parent company and enable Omnicom to build a diversified global presence.

Omnicom is one of the largest advertising, marketing and corporate communications companies in the world. Omnicom has a strong track record of winning new clients and receiving additional deals from the existing ones. The company’s business mix is well diversified geographically and benefits largely from the growing markets. In addition, the company’s efforts in maintaining controlled expenses and strong global reputation are commendable.

Omnicom currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look are Exponent Inc (EXPO - Snapshot Report), Huron Consulting Group Inc.  (HURN - Snapshot Report) and Hill International Inc (HIL - Snapshot Report), each carrying a Zacks Rank #2 (Buy).


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