WPP Share News (WPP)

(Sharecast News) - WPP announced on Wednesday that its majority-owned subsidiary Finsbury Glover Hering, and Sard Verbinnen & Co (SVC), have reached agreement on the terms of a merger to create a "leading" strategic communications firm.
The FTSE 100 advertising giant said the new company would have around 1,000 professionals operating from 25 offices in Asia, Europe, the Middle East and the United States, including its headquarters in New York.

Proforma combined 2020 revenue for the two firms was more than $330m.

Over the past three decades, both Finsbury Glover Hering and SVC had built "impressive reputations", WPP said, advising clients during their "most significant" transformational events.

It said the firm would 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 mergers and acquisitions, private equity, initial public offerings, special-purpose acquisition company transactions, shareholder activism and restructurings.

Senior professionals from both Finsbury Glover Hering and SVC would lead the new company, with SVC's George Sard to join Finsbury Glover Hering's Roland Rudd and Carter Eskew as co-chairmen.

Alexander Geiser would serve as global CEO, Ajay Junnakar would serve as global CFO, Sydney Neuhaus would serve as global COO, and Andrew Cole as deputy global CEO.

Completion of the transaction remained conditional on the satisfaction or waiver of certain conditions, including the expiration or termination of the waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

The transaction was expected to complete in the fourth quarter, and the combined company would operate under a new name from 2022, to be announced in due course.

"The demand for board-level strategic advice on a growing range of financial, reputational and social issues has never been greater," said WPP chief executive officer Mark Read.

"As the reputations of companies and their brands become ever more closely linked, our leadership in this area is a core part of our offer as we support our clients' continued transformation.

"WPP is delighted to support the ambitions of the leadership teams of Finsbury Glover Hering and SVC in creating a powerhouse in strategic communications, with the expertise, scale and footprint to provide unparalleled service to global clients."

At 0930 BST, shares in WPP were down 0.61% at 977.2p.