As is Sorrell’s wont, the transaction is being touted as a merger rather than an outright takeover.
According to Reuters, the move into tech services will allow S4 to compete toe-to-toe with the likes of Accenture (NYSE:ACN) and Globant, “which can sell both digital advertising services to a client, as well as internal digital transformation advice”.
Sorrell said: “Marketing digital transformation involves at least three corporate functions – marketing, sales and IT.
“Entry into the technology services sector through Zemoga gives us the full capability to talk to the chief technology or information officer, as well as the chief marketing and chief sales officer. We now have the full set.”
Founded in 2002 by DJ Edgerton in Colombia, Zemoga has offices in Los Angeles, New York and Wilton, Connecticut and delivery centres in the Colombian cities of Bogota, Cali, Medellin, and Barranquilla.