As the latest in a recent spate of deals, WPP (LSE: WPP) (NASDAQ: WPPGY.US) has announced the acquisition of ARMI-Marketing in Russia, a market research specialist.
WPP is the owner of Kantar, a name that will be familiar to investors in the supermarket sector. The second largest data network in the world behind Nielsen, Kantar provides market research in over 100 countries around the world. Today’s acquisition of ARMI will bolster Kantar’s leadership position in Russia, Central and Eastern Europe, where WPP generates over $600m in sales.
Like all of WPP’s recent acquisitions, ARMI itself is unlikely to move the needle at WPP. With less than £14m in sales, ARMI will represent only 0.1% of WPP’s revenues, a tiny fraction.
That being said, the acquisition does directly import some impressive clients in the region. Founded in the early 1990s, Moscow-based ARMI boasts over two-thirds of Russia’s top 15 advertisers among its customers.
While this is another tiny acquisition, the economics do seem attractive, and WPP will be keen to integrate ARMI into its global marketing network.
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> Mark has no direct investment interests in the securities mentioned in this article.