Ogilvy & Mather has agreed to acquire a majority stake in PennyWise, a digital technology and production company in India. The deal advances Ogilvy & Mather’s digital strategy in Asia Pacific, aligning its existing digital strategy and creative with the technical and production strengths of PennyWise.
Founded in 2003 and based in Hyderabad, PennyWise offers a wide range of 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.
PennyWise employs more than 140 people. The agency had unaudited revenues of INR 119.2 million, for the year ending March 2013, and gross assets of INR 68.3 million, at the same date. PennyWise clients include Vodafone India, Johnson & Johnson, and LIN Digital.
This investment marks a further step towards WPP’s declared goal of developing its networks in fast-growth and important markets and sectors. In 2012, WPP’s revenues in the fast growing economies of Asia Pacific, Latin America, Africa and the Middle East, and Central and Eastern Europe, were 30% of total Group revenues of USD 16.5 billion, or USD 5 billion.
Collectively, the Group, including associates, employs more than 47,000 people in the Asia Pacific region, generating revenues of USD 5 billion. In India, WPP companies collectively employ over 12,000 people, including associates, with revenues of USD 500 million.
WPP’s digital revenues were well over USD 5 billion in 2012 and represented 33 per cent of total Group revenues. WPP recently raised its targets from 35-40 per cent for each of fast-growth markets and new media to at least 40-45 per cent each, over the next five years.