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WPP acquires Brazilian software business to bulk up e-commerce and data capabilities

WPP acquires Brazilian software business to bulk up e-commerce and data capabilities

WPP has bolstered its tech business with the acquisition of DTI Digital, a Brazilian software engineering firm, for an undisclosed sum.

DTI delivers public- and client-facing digital tools, including back-office support systems such as supply automation and data collection software, as well as consumer-facing applications and platforms including e-commerce marketplaces and customer service interfaces.

Why has WPP bought a software company?

  • WPP is doubling down on its stated intention of growing its presence in fast-growing regions and sectors, particularly experience, commerce and technology.

  • By absorbing DTI, WPP will enhance its ability to support the digital objectives of Brazilian clients and further afield across South America by building on its established adtech and systems integration specialisms.

  • DTI will benefit in turn from ready access to an established global network of partners, clients and technology firms.

  • WPP chief Mark Read commented: “Our clients are looking for fully integrated solutions that combine creativity with cutting-edge technology to help them adapt and respond to the rapidly shifting business environment. I am delighted to welcome DTI Digital to WPP and look forward to working together to deliver transformative results for our clients.”

  • DTI was established in Belo Horizonte in 2009 and has grown to employ 800 people with a client roster that includes a mix of national and international names, such as Experian, Hermes Pardini and Bayer.

  • Brazil has become a key growth target for WPP, which has grown its presence in Latin America’s largest nation to encompass 4,000 employees generating revenue of $300m.

  • A final go-ahead for the acquisition must await regulatory approval.

OK, anything else?

  • WPP’s Brazilian venture comes during a broader slowdown in merger and acquisition activity amid unprecedented volatility, with many businesses prioritizing adaptation of their current operations over expansion.

  • This policy is best exemplified by Publicis, which has ruled out making any headline-grabbing moves on big beasts such as Epsilon or Razorfish for the foreseeable future, with the priority being to snap up smaller companies when the opportunity presents itself.

  • Among those to buck this trend is S4 Capital, with its voracious appetite for growth remaining undimmed with the acquisition of Tomorrow at the start of the year.

  • This was followed in February by the merger of fellow PR and media agencies John Doe and Wire.

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