Since a rumoured report was published in September 2012 by Venture Burn, it has now been confirmed that advertising agency WPP has acquired digital agency NATIVE for an undisclosed amount.
The news was confirmed in a tweet by NATIVE MD, Jarred Cinman who initially denied rumours back in September:
Well there it is. At last the next exciting chapter of our journey has begun #NATIVEVML
â€” jarredcinman (@jarredcinman) June 25, 2013
According to MarkLives.com 76% of NATIVE has been acquired byÂ VML, one of WPPâ€™s digital marketing agencies that forms part of the Young & Rubicam network and as a result will be rebranded as NATIVE VML.
On the reasons behind the acquisition Group Chairman of Y&R South AfricaÂ Yossi Schwartz explains that it is essential Y&R tap into South Africa’s growing digital communication space.
All directors, that have been signed to a minimum of five years with the new agency,Â will remain as shareholders in a deal that has been on the table for about a year now since WPPÂ CEO Sir Martin Sorrell, SchwartzÂ and NATIVE CEO Jason Xenopoulos began discussions.
Of the acquisition, Xenopoulos has said,Â â€œThe launch of NATIVE VML marks a profound step in our history. It will allow us to further drive our leadership position in South Africa by bringing world-class skills and the power of VML and the whole Y&R Advertising network to the continent,â€ reports Venture Burn.Â