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Tag: STW

  • WPP acquires 61% stake in STW for $512 million

    WPP acquires 61% stake in STW for $512 million

    MUMBAI: STW Group, Australasia’s marketing content and communications services group, comprising over 75 operating companies, is all set to merge with WPP’s Australian and New Zealand businesses.

     

    Martin Sorrell helmed WPP has acquired a 61 per cent controlling stake in STW for approximately $512 million, of which $387 million will be paid via new shares with STW assuming debt of $125 million.

     

    Post the merger, STW CEO Michael Conaghan will continue in his current post and Robert Mactier will also remain chairman of the company.

     

    Mactier said, “Bringing together the respective iconic brands and wonderfully talented people of STW and WPP Australia and New Zealand under a single common ownership and will unlock tremendous local and global capability, experience and efficiencies for our clients as well as establishing a fantastic platform for our people to prosper.”

     

    “The transaction is EPS accretive as a result of the issue of new STW shares at a premium to market and also delivers a material reduction in STW’s leverage and the opportunity to unlock a range of synergies thereby creating significant value for our shareholders. Importantly, binding governance protocols and shareholder protections have been agreed for the benefit of the continuing minority stakeholders. I consider this a genuine win-win transaction for all our stakeholders. Post completion, we look forward to working seamlessly with WPP as our major shareholder and strategic partner as we embark on the exciting journey that is in front of us,” he further added.

     

    Connaghan said, “To finally align our shareholdings in those existing partnerships (J Walter Thompson, Mindshare, Maxus and Added Value) and now to expand our relationships across the full STW and WPP Australia and New Zealand portfolio of companies is an amazing opportunity. WPP is the leading player on the global stage in our industry. We have the potential to create a group unparalleled in this part of the world, totally focussed on our home markets, but allowing our clients and people open access to the best thinking on a global level.”

     

    Sorrell added, “The merger of our Australian and New Zealand operations with STW, will give us a unique opportunity to offer our local and international clients a comprehensive set of services and to make sure we can offer the best talent through country management. It will also enable STW to focus on the Australian and New Zealand markets, which it knows best, with a structure that will strongly incentivise its people.”

  • O&M buys 33% stake in DTDigital to expand in Australia

    O&M buys 33% stake in DTDigital to expand in Australia

    MUMBAI: Ogilvy & Mather has acquired a 33.3 per cent position in STW’s leading digital communications firm, DTDigital.

    STW Group owns 66.7 per cent of Ogilvy Group Australia, with WPP holding the remaining 33.3 per cent. The investment by WPP in DTDigital brings its ownership in line with that of Ogilvy Australia.

    DTDigital, one of Australia’s successful digital agencies, joined STW Group in 2003 and during the next eight years grew revenues from $1 million per annum to forecast revenue for 2012 of $14 million. Clients include Bunnings, Myer and NAB.

    “Ogilvy knows brand, social and CRM while DTDigital provides great digital, channel and technology skills making the combination a winning formula. We have worked in partnership for the past four years and acquiring part of DTDigital cements that relationship, allowing us to offer first class integrated digital to clients inside Australia and across Asia,” said Ogilvy & Mather Asia Pacific CEO Paul Heath.

    For the past four years, DTDigital has been working alongside Ogilvy in Melbourne. Today DTDigital has more than 110 full-time staff in its Melbourne office.

    STW Group CEO Mike Connaghan said: “It’s not in our nature to sell parts of our prized assets but the logic in this instance was overwhelming. DTDigital already partners closely with Ogilvy Group Melbourne, and there are intentions to expand this partnership with Ogilvy to other markets. The integrated nature of many of our client campaigns makes it absolutely right for Ogilvy that we have DTDigital even further aligned with that business. It’s a good deal for all stakeholders.”

    DTDigital, an award-winning digital marketing design and technology company, was founded by STW Group’s chief digital officer David Trewern in 1996. DTDigital evolved from a multimedia design studio into a business that’s helped transform some of Australia’s leading brands in the digital age.

    Success has come through a full-service offering, which includes deep specialisation in high growth areas that are not typically part of an ‘advertising agency’ offer.

    DTDigital has been able to develop capabilities in specialist areas beyond strategy, creative and production such as user experience, design and consulting, advanced web application engineering, eCommerce, email marketing, data and analytics, social media and social business strategy, mobile marketing and application development, and immersive ‘beyond the browser’ digital experiences.

    “This deal accelerates DTDigital’s launch to the Sydney market. Andrew Baxter, David Trewern and Brian Vella were instrumental in bringing the businesses together in Melbourne and the same team will ensure it is an instant success in Sydney,” Connaghan said.