Bates Asia, which is a part
of the WPP group, has decided to acquire a majority stake in the Indian advertising agency, Enterprise Nexus Communications, subject to regulatory approvals.
In the new entity, which will be called Bates Enterprise (Bates India and Enterprise Nexus has merged into one agency), Bates Asia will hold a 57 per cent stake. It is buying 40 per cent of its stake from Lowe, and the remaining 17 per cent from Enterprise Nexus.
In addition, another 17 per cent stake, currently with Enterprise Nexus, will move to Bates Asia in the next two years.
As per the agreement, Mohammed Khan, founder of Enterprise Nexus Communications, will take over the role of executive chairman of Bates Enterprise, while Subhash Kamath will be CEO.
Khan says, "Interestingly, despite both of them being mid-sized agencies, Bates India and Enterprise Nexus do not have a single conflicting business."
Apart from the main advertising business, the Bates India group will include 141 Worldwide for through-the-line marketing services, as well as public relations and exhibitions.
Khan says, "The merger straightaway takes Bates Enterprise to a place among the top 10 agencies in India. And the best part is that even the big advertisers will now consider us, which wasn't so earlier."
He adds, "Bates Enterprise, with its strong team and its width and depth of services, will provide a powerful alternative to the big spenders."
The WPP Group is one of the world's leading communications services companies with billings of $36 billion. The group's clients include more than 300 of the Fortune Global 500 companies; over half of the NASDAQ 100 and over 30 of the Fortune e-50.
WPP Group companies work with over 330 clients in three or more disciplines; more than 230 clients in four disciplines and nearly 200 clients in six or more countries.
The Group has its presence in 106 countries globally.
© 2005 agencyfaqs!