By STAFF REPORT
Telecom group WPP has picked up 20 percent stake in digital innovation and software builder Globant for $70 million.
Buenos Aires, Argentina-based Globant is armed with both technical and design skills to help companies launching digital marketing campaigns, and it works on cutting-edge technology services including cloud computing, big data and e-commerce.
WPP said the acquisition is in line with its strategy to expand operations in Latin America. The company believes that a partnership with Globant will bolster its digital services units supporting their marketing efforts.
Globant’s net earnings in 2011 totaled $90 million and revenues in the six months to June 30, 2012, topped $56.9 million. Other prominent investors in Globant include Riverwood Capital and FTV Capital.
“Clients want better coordination between their IT departments and their marketing departments, between their chief information officers and chief marketing officers,” said WPP Chief Executive Sir Martin Sorrell.
“There are many consulting companies or digital agencies that are expert in one function or the other. Few, if any, do both and even fewer can integrate deep technical and creative capabilities on a global scale as Globant does.”
Globant says its software and related products can be applied to digital marketing campaigns on a global scale.
Gobant employs 2,700 engineers, marketing specialists and designers in 21 offices across 14 cities in Argentina, Brazil, Colombia, the United States, Uruguay and the United Kingdom. Globant’s clients include American Express, JP Morgan Chase & Co., LinkedIn, Electronic Arts, Google Inc, Coca-Cola, National Geographic and Zynga.
“We are focused on staying ahead of the technology curve, which makes us the right partner for companies looking to build and engage consumers in a highly competitive environment for user attention,” said Globant´s CEO and co-founder Martin Migoya.
WPP says the coming decade will be the decade of Latin America as the continent is going to host the next Soccer World Cup and Olympics.
WPP expects its digital units to post revenue of US$6 billion in 2013, representing 33 percent of the group’s total turnover.