WPP Sells Stake in LatAm-based Globant

WPP has decided to sell its remaining stake in Buenos Aires-based digital marketing specialist Globant, following a recent review of its minority investments.

Through its subsidiary WPP Luxembourg, the group has instructed banks to begin a secondary offering of 5,815,259 common shares of the Argentinian firm. WPP paid around $70m for an initial shareholding in January 2013, raising this to 18.7 percent on Globant's NYSE IPO in 2014. In 2013 Globant employed 2,700 people in twenty-one offices across Argentina, Brazil, Uruguay, Colombia, the USA and the UK, and today headcount stands at more than 6,900, with Asian offices among those added.

At the time of the investment, CEO Sir Martin Sorrell said partnering with Globant would allow WPP companies 'to increasingly provide our clients with insights and skills that will make their digital marketing efforts even more effective and simpler to manage at both the front and back ends', with a WPP statement also adding: 'this is very much the decade of Latin America'.

Following this week's announcement Andrew Scott, Joint COO of WPP says the group 'looks forward to continuing its business relationship with Globant', while the latter's CEO and co-founder Martin Migoya (pictured) comments: 'Globant is extremely well positioned to solve the challenges facing today's organizations, with a strong focus on delivering digital and cognitive transformation, based on innovation, design and deep knowledge of the latest technologies, including AI, Cloud, UX and Agile. WPP's investment in Globant has been very successful and we are excited about the future of our business as we continue to expand, serving an impressive collection of brands worldwide'.

Web sites: www.globant.com and www.wpp.com .