WPP buys Enterprise Nexus

34% stake obtained from founder and 40% from Lowe.

Media conglomerate WPP .acquired a 74 per cent stake in Enterprise Nexus Communications Private Ltd through Bates Asia, its pan-Asian advertising agency network.

The merged entity, to be named Bates Enterprise, will be WPP's sixth agency in India and fifth to rank among the top 10. Bates will acquire a 34 per cent stake from Mohammad Khan, the founder of Enterprise Nexus, over a period of two years.

While 17 per cent of the stake will be picked up now, the rest 17 per cent will be taken up after two years. It has also acquired a 40 per cent stake in Enterprise Nexus from Lowe India. Khan now assumes the role of executive chairman while Bates India chief executive officer (CEO) Subhash Kamath assumes the mantle of CEO, Bates Enterprise.

Bates Enterprise's consolidated revenues are expected to be about Rs 30 crore. Enterprise Nexus' revenues were Rs 13 crore last year. The merger, subject to regulatory approvals, will be completed in a period spanning six months. Khan refused to comment on the size of the deal.

'Bates Enterprise will offer consolidated services through a single window. Apart from the main advertising business, Enterprise's PR and exhibitions division and Bates' 141 Worldwide marketing services will complete the communications services package.

It will emerge as a powerful alternative to major advertisers,' Khan said.

WPP thus adds to its Indian kitty that includes agencies like JWT, O&M, Rediffusion DY&R, Equus Red Cell and Grey Worldwide.

The latest move continues WPP's strategy of developing its networks in fast growing markets and sectors. "It's a great opportunity to create something really fantastic. It's an awesome team, terrific brands, and we're really looking forward to doing some path breaking work for our clients.

We're all extremely charged up," Subhash Kamath, CEO, Bates Enterprise said. Bates and Enterprise have started their joint operations.

Bates handles the creative businesses of Tata AIG, Indian Airlines and Nokia while Enterprise Nexus recently won the creative account of Sony's hi-fi range.

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MERGER DEAL

The merged entity to be named Bates Enterprise will be WPP's sixth agency in india and fifth to rank among top 10.

Bates Enterprise's consolidated revenues are to be Rs 30 crores.

Bates' Enterprise will offer consolidated services through a single window.

WPP adds to its kitty that includes JWT, O&M, Rediffusion DY&R, Equus Red Cell and Grey Worldwide