15 August 2017
The owners of a Dubai-based digital media agency employing 144 full-time staff have sold a majority stake in their company to Grey Group (part of the London-based advertising giant WPP) for an undisclosed sum.
Hug Digital was founded in 2009 by its chairman Oussama Jamal and chief executive Tim Baker, and operates from offices in Dubai Media City, Egypt and India.
The company has a client base that includes fast food franchise chain Americana, du, Dubai Tourism and FlyDubai and by the end of last year it had generated revenue of 19 million UAE dirhams ($5.17 million) and had gross assets of about 7.4 million UAE dirhams.
WPP said in its statement to the London Stock Exchange on Monday that the acquisition was part of its strategy of developing services in important markets and sectors, as well as strengthening its capabilities in digital media. Last year, it earned more than $7.5 billion from digital media, which was 39 percent of its revenue. It has a target to increase this to 40-45 percent within the next four-to-five years.
In a separate statement, Jamal said that Hug Digital was "excited about our new partnership" with WPP.
“We are eager to take our digital expertise and knowledge of the MENA region and scale this with WPP and Grey Group. This acquisition will enable us to access resources that will expand our capabilities and accelerate our growth."
WPP said that its various companies in the MENA region now generate over $400 million per year and employ 4,000 staff.
Baker said the deal "cements seven years of hard, collective work from our fantastic team".
"To be a part of the world’s largest communications group WPP and partner with Grey feels like a great achievement."
Hug Digital was advised on the majority stake sale by law firm Addleshaw Goddard.
© Zawya 2017
The owners of a Dubai-based digital media agency employing 144 full-time staff have sold a majority stake in their company to Grey Group (part of the London-based advertising giant WPP) for an undisclosed sum.
Hug Digital was founded in 2009 by its chairman Oussama Jamal and chief executive Tim Baker, and operates from offices in Dubai Media City, Egypt and India.
The company has a client base that includes fast food franchise chain Americana, du, Dubai Tourism and FlyDubai and by the end of last year it had generated revenue of 19 million UAE dirhams ($5.17 million) and had gross assets of about 7.4 million UAE dirhams.
WPP said in its statement to the London Stock Exchange on Monday that the acquisition was part of its strategy of developing services in important markets and sectors, as well as strengthening its capabilities in digital media. Last year, it earned more than $7.5 billion from digital media, which was 39 percent of its revenue. It has a target to increase this to 40-45 percent within the next four-to-five years.
In a separate statement, Jamal said that Hug Digital was "excited about our new partnership" with WPP.
“We are eager to take our digital expertise and knowledge of the MENA region and scale this with WPP and Grey Group. This acquisition will enable us to access resources that will expand our capabilities and accelerate our growth."
WPP said that its various companies in the MENA region now generate over $400 million per year and employ 4,000 staff.
Baker said the deal "cements seven years of hard, collective work from our fantastic team".
"To be a part of the world’s largest communications group WPP and partner with Grey feels like a great achievement."
Hug Digital was advised on the majority stake sale by law firm Addleshaw Goddard.
© Zawya 2017
