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

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022