This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

WPP Acquires Stake In Globant

SAN FRANCISCO, Jan. 2, 2013 /PRNewswire/ -- WPP (NASDAQ:WPPGY), the world's leading communications services group, has acquired a 20% stake in Globant, a new-breed technology services provider focused on delivering innovative software solutions by leveraging emerging technologies and trends.

(Logo: )

Globant's net revenues for the year ended 31 December 2011 were US$90 million, and the net revenues for the six months until 30 June 2012 were US$56.9 million with total assets of US$69 million as of 30 June 2012. WPP will invest approximately $70 million in acquiring the Globant stake. Previous investors Riverwood Capital and FTV Capital continue to hold equity stakes in Globant.

"Increasingly, clients want better coordination between their IT departments and their marketing departments, between their Chief Information Officers (CIOs)  and their Chief Marketing Officers (CMOs)," 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. Partnering with Globant will allow our companies to increasingly provide our clients with insights and skills that will make their digital marketing efforts even more effective and simpler to manage at both the front and back ends." 

Globant's approach is unique in that it provides clients with both the technical rigor that drive innovative software products, combined with the creative and design skills found in digital agencies. Globant has deep experience in working with state of the art technology trends including mobile, gamification, social networks, cloud computing, Big Data and e-commerce. Globant's clients include American Express, JP Morgan Chase & Co., LinkedIn, Electronic Arts, Google, Coca-Cola, National Geographic, Zynga and Sabre Holdings, as well as a number of WPP companies, such as JWT, Young & Rubicam, Grey, GroupM and Kantar.

"Our core competencies in latest trends paired with our innovation processes, enable us to deliver better experiences to end users through technology. 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.  "We are extremely proud to welcome WPP into our family; their support will help us to achieve our goal of becoming one of the most innovative software development companies in the world."

This investment continues WPP's strategy of targeting fast-growing markets and sectors and the application of technology to the communications services industry. In 2012 WPP completed 25 transactions with companies that are in either faster growing markets (eg BRICs, Next 11, CIVETS, MIST) or faster growing sectors such as digital, data or application of technology, or both.  WPP's digital revenues (including associates) are budgeted to total well over US$6 billion in 2013, representing over 33% of the Group's total revenues, which in 2011 totalled US $16 billion. WPP has set a target of 35%-40% of revenues to be derived from digital over the next five years.

In addition, this transaction also continues WPP's strategy of investing in fast growing geographic markets, which also currently represent one-third of revenues, with a similar objective to reach 35-40% over the next five years and reflects its commitment to developing its strategic networks throughout Latin America. WPP regards this decade as very much the decade of Latin America, particularly with the FIFA World Cup taking place in Brazil in 2014 and the Olympics in Rio in 2016. The Group collectively, including associates, will have revenues of over US $1.6 billion and will employ over 18,000 people in the LATAM region alone.

About GlobantWe are a new-breed technology services provider focused on delivering innovative software solutions by leveraging emerging technologies and trends. We combine the engineering and technical rigor of IT services providers with the creative approach and culture of digital agencies. Globant is the place where engineering, design and innovation meet scale.

At Globant the best engineers team up with our art design studios and innovation labs to deliver a superb user experience through innovation, usability, scalability and availability. Today, we are the Latin American leader in the creation of innovative software products that appeal to global audiences. In only 9 years, we created a Company that:

- Has more than 2,700 professionals working for companies like LinkedIn, Electronic Arts, JWT and Zynga, among several others

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,131.86 +47.37 0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,838.6430 +8.1730 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs