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