Hyundai-backed Innocean Worldwide has agreed to acquire Wellcom Group for 183.6 billion won (US$154.6 million) in a move the Korea-based agency says will spur "a second leap in the global market with its differentiated digital capabilities".
The acquisition will secure "a large number of new global clients", expand Innocean's US presence and give it a foothold in markets it has not yet entered, including Singapore, Malaysia, Hong Kong and New Zealand. All told, it will expand Innocean's scope to 19 countries, 28 offices and over 2,700 employees.
"Thanks to Wellcom Group, Innocean's digital marketing value chain is now complete,” Innocean global CEO Kun-Hee Ahn said in a release. "By maximizing the synergy between the Korean HQ and overseas operations, we will stand as a truly global leading company in the digital transformation era."
Australia-based Wellcom Group runs eight subsidiaries in the US, Europe and Asia-Pacific. It has offices in Adelaide, Sydney, Melbourne, Auckland, Kuala Lumpur, Singapore, Hong Kong, London, Los Angeles, New York, and Columbus, Ohio. The company provides digital creative content, social-media strategy, and digital marketing services and counts Tesco, Coles, Tempur-Sealy, ANZ Bank, Telstra, Victoria’s Secret, The Body Shop, Louis Vuitton and L’Oreal among its clients. Wellcom also owns a proprietary cloud-based platform that allows clients to track project progress and manage content assets.
The purchase also gives Innocean a greater presence in the US, where it acquired Los Angeles-based David & Goliath in late 2017. "As we are now able to advance beyond the original US base in the west to the eastern New York area, we will be endeavouring to target the world's largest advertising market,” the agency said.