In China, Grey has inked a deal to acquire 51 per cent of marketing services agency Star Echo.
According to sources, Star Echo was a target for another WPP agency — believed to be within GroupM — before the holding company decided it would make a better fit for Grey.
Meanwhile, WPP Digital has bought out digital shop Blue Interactive. While the value of the deal was not disclosed, sources estimate a figure of US$15 million to account for 100 per cent of Blue. The digital specialist last year reported revenues of S$11.1 million (US$7.2 million).
The purchases cap a busy period for WPP, which has also inked three other global deals in quick succession — GroupM acquired India’s Interactive TV, while MEC and Y&R bought agencies in Austria and South Africa, respectively.
Sources also note that the company is eyeing other potential digital acquisition targets in China.
The Star Echo deal marks Grey’s first significant mainland purchase since it ended its joint-venture with Citic Guoan in favour of a wholly-owned foreign enterprise structure.
“Star Echo is without a doubt one of the smartest companies I’ve met,” said Grey regional CEO Mike Amour. “We have been looking for a partner that can help develop our G2 capabilities, and Star Echo is highly specialised in terms of below-the-line. It helps considerably that Star Echo’s largest client is Procter & Gamble.”
Amour added that while G2 had made inroads into China via its business with Shanghai Volkswagen, BAT and P&G, “essentially it has largely been CRM and below-the-line. Star Echo gives us penetration into a much wider geography, because it has a fieldforce that spans the whole country.”
At Blue, CEO and strategy officer Jay Shapiro explained that there are no current plans to merge the agency into another WPP shop. “It is an entrepreneur’s dream to start something and for it to be recognised as a great asset,” he said. “I’m staying on at Blue and look forward to making use of WPP’s resources to give us even greater reach to service our clients as we continue to grow.”
