Publicis, one of the world's biggest communications and advertising company, has acquired a 60% stake in India's leading marketing services agency - Solutions Integrated. The financial details of the deal, however, are not be known.
The acquisition will enable Publicis to foray into new areas such as direct marketing and promotions. The deal is also expected to give Delhi-based Solutions Integrated, an access to Publicis' wide clientele. According to the deal, Solutions Integrated will become a resource to all Publicis group agencies.
Srikant Sastri, managing director, Solutions Integrated, said the deal was a “win-win” for both the company's clients and employees. “With the deal, we will not only get an access to an expanded client base, we will also get access to global resources. It will also help us to build employees' skills, innovation and creativity,” Mr Sastri told ET.
According to Marc Landsberg, president of Arc Worldwide, a Publicis group agency, the deal with Solutions Integrated is a part of the group's overall India expansion plan. “Having a network of local partners and expertise across multiple disciplines will help us enhance our presence in the ever growing Indian market,” Mr Landsberg said.
Publicis group's business in India is centred around advertising and media buying and consultancy. The group operates in the Indian market through more than half a dozen subsidiary agencies, including Ambience Publicis advertising, Publicis (India) Communications, Leo Burnett, Orchard Advertising, Saatchi & Saatchi, Starcom Media Worldwide and Zenith Optimedia.
All these agencies together cater to a host of multi national biggies such as Coca Cola, General Motors, McDonald's and Proctor & Gamble. On the other hand, Solutions offers integrated management strategy and execution to companies such as Hewlett Packard, Microsoft, Cisco, Gillette, ESPN and Nerolac.
The two companies, however, did not disclose the price at which the stake was acquired. The acquisition deal would be sealed only after receiving mandatory government approvals.