GroupM is looking to buy Mumbai-based digital agency FoxyMoron, according to people familiar with the negotiations. The deal is expected to close by the end of the month. GroupM refused to comment.
According to sources, the entire FoxyMoron team is expected to move to GroupM post the acquisition. However, it is not clear how they will be integrated within the company, though one source said that FoxyMoron would function as an independent entity within GroupM. Financial details of the deal are unavailable though one media report has pegged the total deal at $30 million.
FoxyMoron has worked with clients like Castrol, Femina, AXN, VIP, Parle, PlayStation, Asian Paints, Eristoff, Starbucks, etc. It was founded in 2008 by Harshil Karia, Paritosh Ajmera, Suveer Bajaj and Pratik Gupta.
The Indian digital advertising market is expected to be 12.6 per cent of the total ad spends in 2015, according to the Pitch Madison Ad Spend report. The same report stated that digital advertising was worth Rs 3,970 crore in 2014 and is expected to reach Rs 5,135 crore in 2015.
The digital space in India has become ripe for M&As as players look to consolidate their presence in the market. In January, Dentsu Aegis Network announced that it would acquire WATConsult, in a deal said to be worth around Rs 200 crore.