13th Oct 2021 09:00
(Alliance News) -Â Advertising and marketing firm WPP PLC on Wednesday said its majority-owned subsidiary Finsbury Glover Hering is to merge with Sard Verbinnen & Co to create "the world's leading strategic communications firm".
The transaction values the combined Finsbury Glover Hering-SVC group at an equity value of USD917 million, and SVC alone at USD303 million. WPP will be the majority shareholder of the combined group, holding a 57.4% stake.
"The firm will be a leader in all aspects of strategic communications, including government affairs, corporate reputation, crisis management, and transformation and change, as well as the leading force in financial communications worldwide, with strong experience and expertise in M&A, private equity, IPOs, SPAC transactions, shareholder activism and restructurings," said WPP.
Pro-forma combined 2020 revenue was in excess of USD330 million.
The deal is expected to complete in the fourth quarter of 2021 and the combined firm, headquartered in New York, will start operating under a new name in 2022.
WPP Chief Executive Mark Read said the company was "delighted" to back the merger.
Shares in WPP were down 0.9% at 974.80 pence in London on Wednesday.
By Lucy Heming;Â [email protected]
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