Global marketing communications agency JWT, a fully-owned operating company of WPP plc (WPPGY - Free Report) , recently agreed to acquire Lemon Sky - a leading creative digital marketing company in Poland - for an undisclosed amount.
Lemon Sky provides digital advertising and campaign services for diverse brands. JWT Poland offers integrated communications services ranging from strategic consulting, brand activation concepts to creative execution across all media forms. Post acquisition, Lemon Sky will join JWT Warsaw to strengthen the company's digital platform.
This acquisition is in line with WPP’s inorganic growth strategy and is likely to augment its revenues in the long term. In 2012, WPP digital revenues (including associates) were over $5 billion, representing 33% of the Group's total revenues of $16.5 billion. WPP expects revenue from digital operations in the range of 40%–50% in the coming five years.
WPP has a strong presence in Poland and across the Central and Eastern European markets with a workforce of over 6,000 and revenues of approximately $700 million annually. Lemon Sky is likely to be another valuable addition to WPP's portfolio.
In 2013, WPP completed 62 acquisitions worldwide across all spectrum of its business. The attractive acquisitions coupled with continued focus on growth are likely to improve WPP’s leading position in the market in the long run.
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 Millennial Media Inc , holding a Zacks Rank #1 (Strong Buy), and Marin Software Inc. and Publicis Groupe SA (PUBGY - Free Report) , both holding a Zacks Rank #2 (Buy).