WPP share price: Ad giant acquires majority stake in Brazil’s 3yz Marketing Digita

WPP Plc (LON:WPP) has acquired a majority stake in Brazilian online social and content marketing agency 3yz Marketing Digita, in another investment furthering its push into digital media. The London-listed ad giant announced the deal today in a statement, without disclosing its financial terms. The majority stake was acquired through WPP’s global marketing communications arm, Ogilvy.

According to the statement, 3yzis is a Porto Alegre-based company, with an office in Sao Paulo. The firm employs 53 people and serves a number of clients, including Grendene, RBS, Reebok, Ri Happy, Shoppings Iguatemi and Tramontina. Following the transaction the firm will become part of Ogilvy Group Brazil, but will continue to operate as 3yzis.
With this investment, WPP further strengthens its presence in Brazil, which is an important market for the company. The ad giant generates around $600 million of annual revenue in Brazil, which makes the country WPP’s seventh-largest market. Over the past year the company has made a number of investments in the country, including acquiring a majority stake in online performance, programmatic and conversion marketing agency Jüssi Intention Marketing.

In today’s trading, WPP shares were down 0.5 percent at 1,474.00p, as of 13:18 GMT. The stock has fallen 5.6 percent since the start of the year.
The 25 analysts offering 12-month price targets for WPP have a median target of 1,650p, with a high estimate of 2,035p and a low estimate of 1,250p. As of Feb ruary13, 2016, the consensus forecast amongst 31 polled investment analysts covering WPP had it that the company will outperform the market. The same consensus estimate has been maintained since October 16, 2009, when the sentiment of investment analysts improved from “hold”.
As of 14:31 GMT, Thursday, 18 February, WPP PLC ORD 10P share price is 1,472.50p.