WPP poised to swoop on Tesco’s data business
Sir Martin Sorrell is reportedly close to signing off a bid by WPP to acquire a majority stake in Tesco’s Dunhumby, the data division of the ailing supermarket giant responsible for running its Clubcard loyalty scheme.
Reports in Bloomberg suggest that the advertising firm is close to agreeing a price for the company, following the first emergence of rumours in January.
Dunhumby has been valued at as much as £2bn with a number of private equity firms also said to be interested, either working in partnership with Tesco or as a solo initiative.
WPP has yet to comment on the speculation but hinted at its acquisition strategy in its 2015 financial update, with a statement reading: “Transactions will be focused on our strategy of new markets, new media and data investment management, including the application of new technology and big data.
“We will continue to seize opportunities in line with our strategy to increase the group's exposure to: faster growing geographic markets and sectors; new media and data investment management, including the application of technology and big data.”
To this end the advertising juggernaut will set aside up to £400m per year for acquisitions with the exception of ‘slightly more significant one-offs’.
Whilst WPP is no stranger to acquisitions, it has purchased Appnexus, Comscore and Rentrak in the past few months alone, such a deal would dwarf all previous purchases.