O&M: Its Stake In PennyWise Is Not Pound Foolish
WPP’s Ogilvy & Mather has agreed to acquire a majority stake in PennyWise Solutions, one of India’s leading digital technology and production companies. Terms were not disclosed.
Founded in 2003 and based in Hyderabad, PennyWise offers a range of digital services, including custom application development, mobile application development, SEO, digital
listening, online consumer response management systems, data analytics and business intelligence, network support and infrastructure management services.
PennyWise employs more than 140 people. Agency clients include Vodafone India and Johnson & Johnson.
WPP said the deal advances Ogilvy & Mather’s digital strategy in Asia-Pacific, aligning its existing expertise in digital strategy and creative with the technical and production strengths of PennyWise.
Furthermore, the holding company said that the investment marks another step towards WPP's declared goal of developing its networks in fast-growth and important markets and sectors. In 2012, WPP's revenues in the fast growing economies of Asia Pacific, Latin America, Africa and the Middle East, and Central and Eastern Europe, were 30% of total Group revenues of $16.5 billion, or $5 billion.
Collectively, WPP including associates employs more than
47,000 people in the Asia Pacific region, generating revenues of $5 billion. In India, WPP companies collectively employ over 12,000 people, including associates, with revenues of $500
WPP's digital revenues were well over $5 billion in 2012 and represented 33% of total Group revenues. WPP recently raised its targets from 35-40% for each of fast-growth markets and new media to at least 40-45% each, over the next five years.