ITS pace could be slow, but WPP-owned JWT is surely making strides on the acquisition front. After acquiring a majority stake in Mindset Advertising, a Hyderabad-based advertising agency in 2011 and in Hungama Digital Services in 2012, JWT India has announced its latest buyout. The marketing communications agency has picked up a majority stake in Social Wavelength, a full-service social media agency headquartered in Mumbai. Social Wavelength also has offices in Delhi and Chennai and employs 170 people. While the size of the stake bought by JWT could not be confirmed at the time of filing the report, sources close to the development say that JWT has acquired around 55% stake in Social Wavelength. With this, Social Wavelength?s angel investors have made an exit. Founded in 2009, Social Wavelength had raised angel funding from four investors in two rounds?in June 2010 and in December 2011. For the record, Social Wavelength?s revenues for the year ended March 31, 2013 were R9.15 crore, with gross assets of R5.92 crore.
Social Wavelength?s expertise ranges from strategy to execution that includes social media marketing, online reputation management, social customer relationship management (CRM) and social media for human resources (HR). The acquisition is expected to add value to JWT?s delivery capabilities across social media monitoring, online reputation management, digital ideation and production.
?JWT?s acquisition of Social Wavelength is a logical confluence of social media and mainline expertise coming together to create integrated communication for brands. The rich experience of five years that we have in this young industry of social and digital media, will find the next leap of growth through this partnership. A socially connected world is going to create new challenges and opportunities for brands, and we will create solutions to help brands navigate those challenges,? said Sanjay Mehta, joint CEO of Social Wavelength.
Mehta further says that while Social Wavelength will continue to work as a separate entity, the synergies of the two agencies will be utilised whenever required for both JWT and Social Wavelength?s existing clients. Some of the clients from the JWT stable include Airtel, Pepsico, FritoLay, ITC, Godrej, Hindustan Unilever, GSK Consumer Healthcare, Hero Moto Corp, Ford, Nike, Nestle, Nokia, UB, Kingfisher, Kellogg?s, Tisco and Exide among others. Meanwhile, Social Wavelength?s client list includes Franklin Templeton, Apollo Hospitals, Raymond, Reliance, Genpact, Tata Housing, Ginger Hotels, Magma Fincorp, Tourism Victoria and Idea Cellular among others.
Says Colvyn Harris, CEO, JWT South Asia, ?We want to be a critical resource partner across the many solutions we provide to our clients. As we continue to relentlessly transform our offerings, Social Wavelength adds a huge dimension to our existing clients and the brands we steward. Across the marketing communications value chain and across various digital touch points the skills and capabilities of Social Wavelength will be that edge.?
Interestingly, JWT Asia Pacific has been investing heavily in expanding its digital footprint in the last two years. In addition to the acquisition of Hungama, in India, JWT acquired Post Visual in South Korea in 2013, and took a stake in Converge, in Pakistan, in 2012. XM Asia, a digital agency owned by JWT, also acquired Designercity, in Hong Kong, and Thomas Idea, in Thailand, in 2013, and XM Gravity in 2012.