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Global communications services company WPP plc (WPPGY - Analyst Report) acquired a leading Canada based creative digital marketing agency, Twist Image, for an undisclosed sum.

The Acquiree

Twist Image, headquartered in Montreal, provides dedicated services across the digital landscape. Its services include development of integrated digital marketing platforms and campaigns spanning social media, interactive experiences, mobile and content creation. The firm solves complex business challenges for an impressive list of clients including The Toronto-Dominion Bank (TD - Snapshot Report), Walmart Canada and Dairy Farmers of Canada.

Synergies

For Twist Image, the deal represents a lucrative growth opportunity, while ensuring the independence of the agency in its daily operations. WPP’s size and scale will enable Twist Image to expand its geographical footprint. Also, WPP’s rich customer base and vast product portfolio will aid Twist Image in its expansion strategies, allowing the latter to explore early-stage ideation, while enriching existing partnerships and building new ones.

Moreover, WPP will provide Twist Image with an unprecedented access to sophisticated data analytics and cutting-edge technology via WPP Data Alliance, empowering it to build more comprehensive solutions. WPP has crucial strategic partnerships with industry giants such as Google Inc. , Facebook, Inc. (FB - Analyst Report) and Adobe Systems Inc. (ADBE - Analyst Report).Twist Image looks set to obtain significant value from the deal and bolster its digital capabilities.

WPP’s Acquisition Spree

WPP has been on an acquisition spree lately, completing 20 acquisitions worldwide across its operation spectrum since January 2014. Of these, 13 acquisitions and investments were made in new markets and 16 in quantitative and digital industries.

The acquisition of Twist Image furthers WPP’s strategy of strengthening its foothold in the global digital media industry. The company seeks to increase the share of digital revenues in its total sales to 40-45% in the coming 5 years, up from its current share of about 35%.

Looking ahead, WPP, one of the largest advertising companies globally, seems poised to maintain its competitive position and promote its operations by continuing to exploit inorganic growth strategies.

WPP currently holds a Zacks Rank #4 (Sell).

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