Recently, WPP Digital, the digital division of the global communications services company WPP plc (WPPGY - Free Report) , purchased a majority stake in a UK-based leading digital consultancy, Cognifide, for an undisclosed sum.
Per the deal, both WPP Digital and its digital agency network will have equal stakes in Cognifide. This acquisition is expected to be mutually beneficial to the participating companies. While Cognifide will expand its geographical presence and will add value to its enterprise clients in terms of providing a platform for the development of its own consulting services and technology offerings, WPP will further strengthen its expertise and presence in the marketing technology field and will get access to Cognifide’s important clients.
Cognifide is a digital technology consultancy that specializes in Content Management and Digital Asset Management technology. It essentially aids companies and brands in improving their potential through company-wide deployment of digital frameworks that can create, manage and optimize measurable digital experiences swiftly across all digital channels ranging from web to mobile.
Apart from Skype, Roche (RHHBY - Free Report) and Virgin Media, some of the world’s leading companies from financial services, life sciences, media & entertainment, and retail form Cognifide’s clientele. Moreover, Cognifide is the primary partner for Adobe’s (ADBE - Free Report) Adobe Experience Manager (AEM) platform that assists companies to create, store and distribute content online, via mobile devices and through apps.
Acquisitions have been WPP’s primary tool to strengthen its foothold in new and emerging markets. It completed 62 acquisitions worldwide across all the business segments in 2013. Of these, 38 acquisitions and investments were made in new markets, 32 of which were in new media. These strategic acquisitions represent a major competitive advantage for the company and enhance its creative reputation and co-operation among the Group companies.
In Feb 2014, WPP Digital, the digital investment wing of WPP plc entered into a global partnership with Percolate, a leading content-marketing company, for the creation of effective and engaging digital content for its operating companies and clients. The partnership also includes a strategic investment by WPP Digital in Percolate, which is expected to expand the latter’s global operations.
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 now in the industry include Millennial Media Inc. , holding a Zacks Rank #1 (Strong Buy).