TBWA Worldwide, a division of Omnicom Group Inc (OMC - Analyst Report), recently announced the acquisition of Magnon Group - a comprehensive digital agency in India - for an undisclosed amount.
Post-acquisition, Magnon Solutions - the award-winning domestic digital agency, and Magnon International - a global digital outsourcing agency, will become part of TBWA. With over 150 professionals on board, Magnon offers various digital services including web designing, digital marketing, search and social media optimization, online brand strategy consulting, eCommerce solutions and application developments.
The strategic acquisition is intended to strengthen and extend TBWA’s capabilities across the Indian subcontinent and cater to the growing needs of its clients’. TBWA is concentrating on strengthening its potential and expanding its client base globally through acquisitions.
The acquisition is likely to be synergistic in the long run. TBWA expects Magnons’ digital and managerial expertise should prove beneficial in future and enable the company to reach new heights with respect to ongoing services and portfolio expansions. Further, TBWA’s global presence will also enable Magnon to become a market leader in India. Consequently, this transaction is a win-win situation for both the companies.
Omnicom is one of the largest advertising, marketing and corporate communications companies in the world. The company’s agencies operate in all the major markets across the globe and provide an extensive range of services. The company provides advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing and other specialty communications services to over 5,000 clients in more than 100 countries.
Omnicom currently has a Zacks Rank #4 (Sell) and a long-term Neutral recommendation. One of its competitors, The Interpublic Group of Companies (IPG - Analyst Report) carries a Zacks Rank #3 (Hold).