WPP acquires Salmon Group

Advertising group WPP announced Wednesday it purchased the entire issued share capital of Okam, the holding company of digital consultancy firm Salmon Group.

Advertising group WPP announced Wednesday it purchased the entire issued share capital of Okam, the holding company of digital consultancy firm Salmon Group.

The FTSE 100 company said the acquisition would improve its position in e-commerce which has become of increasing importance to retailers, manufactures and brand owners.

Sales in e-commerce are growing 10% per year, WPP added.

Salmon's clients have won awards for e-commerce and multi-channel achievements including Retail Week's Multichannel Retailer of the Year, Technology Solution of the Year and Multichannel Integration Project of the Year.

The group provides digital consulting, design, delivery and support services to retail, wholesale and manufacturing customers including Akzo Nobel, Argos, Game, Halfords, Kiddicare, Morrisons, Selfridges and Premier Farnell.

Salmon - which operates from offices in the UK, China and Australia - will continue to operate as an independent and stand-alone brand within WPP and be led by Chief Executive Officer (CEO), Neil Stewart.

"With increased client exposure and access to new geographies, our partnership with WPP will help fuel the next stage of our evolution into a global full-service digital delivery agency," Stewart said.

"We are delighted to be able to do this whilst preserving Salmon's independent culture and maintaining our focus on serving our clients."

Sir Martin Sorrell, CEO of WPP, said the partnership would bring customers a new offering of marketing and technology in strengthening its digital capabilities.

"The application of technology to marketing continues to accelerate, not least in the retail market and success requires close collaboration between our clients' marketing and sales organisations and their IT organisation," he said.

Salmon's consolidated unaudited revenues for the year ended October 31st were £34.3m, with gross assets at £11.3m.

WPP's digital revenues are budgeted to exceed $6bn in 2013, representing more than 33% of the group's total revenues, which in 2011 totalled $16bn. The company set a target of 35-40% of revenue to be derived from digital in the next five years.

RD

Recommended

The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022
3 emerging-market stocks to watch
Share tips

3 emerging-market stocks to watch

The top emerging-market stocks to keep an eye on, according to Union Bancaire Privée’s Eli Koen.
1 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Radiator vs electric heater – which is cheaper?
Personal finance

Radiator vs electric heater – which is cheaper?

We compare the costs, pros and cons of radiators and electric heaters and see which one will help keep your energy bill as low as possible.
28 Nov 2022
State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments
State pensions

State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments

LCP launches Mothers Missing Millions campaign amid DWP state pension errors.
3 Dec 2022