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TBWA Worldwide, a global advertising network of Omnicom Group, Inc (OMC - Analyst Report), recently announced the acquisition of an independent German advertising agency- Heimat for an undisclosed amount. Post-acquisition, TBWA Worldwide will hold the majority stake in the company headed by its founding partners with the remaining stake owned by Heimat.

Heimat enhances Omincom’s portfolio with its creative products as well as its long-term relationships with national and international brands. In 2013, Heimat exhibited year-over-year growth of 40% and this acquisition is the ideal time for Omnicom to expand its presence in the German market. An impressive agency with an outstanding creative team and entrepreneurial skills coupled with TBWA’s strength is likely to create the fourth largest advertising market globally.

Earlier in Mar 2014, TBWWA Worldwide announced the acquisition of the advertising agency, Mood to expand its presence in the Brazilian market. This acquisition is also in line with the company’s strategy to form a scalable and efficient global network in the advertising field.

Omnicom is one of the largest advertising, marketing and corporate communications companies in the world. On the operational front, Omnicom offers cost-effective marketing services in the field of advertising, which is expected to improve margins going forward.  

Omnicom intends to strengthen its business by expanding its client base globally through acquisition of complementary companies. The company’s geographically-diversified business mix continues to benefit from growing demand in developing regions like Asia Pacific, Latin America and Africa.

Omnicom currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth considering in the industry include The Interpublic Group of Companies, Inc. (IPG - Analyst Report), Sizmek Inc. and YuMe, Inc (YUME - Snapshot Report), each carrying a Zacks Rank #2 (Buy).

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