Ogilvy & Mather, a US based advertising & marketing agency and a division of WPP, will be acquiring a majority stake in Hyderabad based digital technology company PennyWise Solutions for an undisclosed amount. The terms of the deal have not been disclosed.
Following the deal, PennyWise said it will serve as the digital technology and production center for Ogilvy & Mather in India and will power the digital delivery for the agency’s India network and O&M APAC network.
PennyWise, founded by Anand Morzaria in 2003, provides 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. The company claims that its current client portfolio includes Vodafone India, Johnson & Johnson and WPP Agencies including Ogilvy & Mather, Soho Square, among others.
On the other hand, Ogilvy offers solutions such as advertising, digital marketing, customer engagement, public relations, healthcare communications, activation and shopper marketing among others.
Digital ad/marketing agency acquisitions in the past year
Over the past year or so, we’ve seen lots of consolidation in the advertising and marketing agencies. These are:
– In May 2013, Japanese advertising major Dentsu acquired 80% stake in the digital advertising agency and consulting firm Webchutney for an undisclosed amount. Prior to this, it had acquired a 51% stake in Mumbai-based Indian advertising agency Taproot India in August 2012 while Ad2c, a JV between Affle and D2 Communications (a Dentsu & NTT Docomo JV) had acquired mobile marketing firm Mobimasta in March 2012.
– In April 2013, Publicis Groupe had acquired Bangalore-based technology service provider Neev Technologies for undisclosed amount. This was the company’s fifth acquisition in India in the last two years, including the Convonix acquisition in March 2013, iStrat and MarketGate in December 2012, Resultrix in August 2012 and Indigo consulting in April 2012. In 2010, Publicis had also acquired a majority stake in the public relations company 20:20 Media and the social media consulting company 2020Social. Publicis Groupe had also merged with the New York based Omnicom in July 2013.
– In March 2013, IPG Mediabrands, the media holding group of Interpublic group had acquired the digital marketing agency Interactive Avenues for an undisclosed amount. Following this acquisition, Interactive Avenues had become a part of IPG Mediabrands’ Mediabrands Audience Platform (MAP) and Interactive Avenues co-founder Amar Deep Singh was appointed as MAP India CEO.
– In January 2013, Omnicom owned advertising agency TBWA had acquired the Indian digital agency group Magnon for an undisclosed amount. The acquisition included Magnon’s digital agency Magnon Solutions and its digital outsourcing agency Magnon International.
– In June 2012, Global advertising major WPP Group had acquired a majority 51% stake in Hungama Digital Services Private Limited via its wholly owned agency JWT Singapore.