WPP snaps up Blue

Singapore - WPP Digital has acquired a 100% stake in Blue Interactive Marketing - the acquisition also includes Blue's wholly-owned search engine marketing subsidiary Demand.

WPP's investment comes on the back of its strategy of developing its networks in fast growing markets and sectors and strengthening its capabilities in the digital media industry. Its acquisition of Blue will strengthen its reach in Asia and sees the addition of technology assets, people and skills in the area of digital and search engine marketing.

Jay Shapiro, CEO and chief strategist of Blue told Marketing he will be staying on in his role, and confirmed that apart from the fact that they've been acquired, "nothing will change".

"This is a good thing for the industry and for our clients - we believe that by leveraging WPP's existing global base of top-quality resources and assets, we will now be able to offer a cohesive solution to our clients that meets their needs anywhere in the world," Shapiro said.

In a statement Sir Martin Sorrell, CEO, WPP said the company acquired the digital marketing agency as it met all of its business objectives. "We have identified three key strategic goals for WPP: increasing our presence and revenues in Asia, Latin America, Africa and the Middle East, Central and Eastern Europe; increasing revenue contribution from marketing services; and increasing our skills and revenues from quantifiable marketing services such as digital and market research. Blue is a leader in all three of these areas," Sorrell said.

The Blue businesses will continue to be run by existing management within WPP, as part of WPP Digital. The agency was established in 1999 and currently has a staff strength of 131 people. Headquartered in Singapore, the company also has offices in Beijing, Shanghai, London and Palo Alto in California. Clients include Hewlett Packard, SAP, Johnson & Johnson, Procter & Gamble, Singapore Airlines and Intercontinental Hotels.

Blue's unaudited revenues for the year ended 31 December 2006 were $11.1 million, with gross assets at $6.15 million. This acquisition follows last month's announcement of WPP's cash tender offer for online advertising company, 24/7 Real Media in the US.