Global communications services group WPP has acquired a 20% stake in Argentine IT firm Globant for approximately US$70mn, the latter said in a statement.
"Partnering with Globant will allow our companies to increasingly provide our clients with insights and skills that will make their digital marketing efforts even more effective and simpler to manage at both the front and back ends", WWP CEO Martin Sorrell said.
Globant's clients include American Express, JP Morgan Chase, LinkedIn, Electronic Arts, Google, Coca-Cola, National Geographic, Zynga and Sabre Holdings, as well as a number of WPP companies, such as JWT, Young & Rubicam, Grey, GroupM and Kantar.
"This transaction also continues WPP's strategy of investing in fast growing geographic markets, which also currently represent one-third of revenues, with a similar objective to reach 35-40% over the next five years, and reflects its commitment to developing its strategic networks throughout Latin America," the statement reads.
Globant has more than 2,700 professionals working for companies including LinkedIn, Electronics Arts, JWT and Zynga, among several others.
The company has a portfolio of business solutions ranging from software development and infrastructure management to creative services, including enterprise portals, mobile applications, web-enabling of legacy applications, content management, e-commerce and VoIP.
Globant has been expanding its operations through certain acquisitions. In August 2011, it acquired US mobile and social applications firm Nextive to expand its presence in the US.
In October 2012, the company acquired Brazil-based innovation consulting and software development firm TerraForum with the aim of entering the Brazilian market, while leveraging TerraForum's experience, customer portfolio and development centers in São Paulo, Rio de Janeiro, Curitiba and Belo Horizonte.
Globant has offices in Argentina, the US, Brazil, Colombia, Uruguay, the UK and Luxembourg.