WPP Acquires Major Stake in Cognifide - Analyst Blog
March 25 2014 - 7:00PM
Zacks
Recently, WPP Digital, the digital division of the global
communications services company WPP plc (WPPGY),
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) 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) 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. (MM), holding a Zacks Rank
#1 (Strong Buy).
ADOBE SYSTEMS (ADBE): Free Stock Analysis Report
MILLENNIAL MEDA (MM): Free Stock Analysis Report
ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report
WPP PLC (WPPGY): Free Stock Analysis Report
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