WPP has bought UK-based tech company Cloud Commerce Group as it looks to diversify its business beyond advertising and into e-commerce.
Cloud Commerce Group, which helps businesses sell their products across e-commerce platforms such as Amazon, eBay, Etsy and Wayfair, will join Wunderman Thompson's global network as part of its commerce and technology proposition.
For WPP, the investment marks a growing intent to offer clients and prospective clients commerce options. It is aligned with its "accelerated growth" strategy, which includes achieving growth by expanding into commerce, experience and technology from "25% of our business today to 40% by 2025" and supplementing growth through "scalable M&A of £200 million to £400 million [US$265 million to $529 million] annually".
Mark Read, WPP's chief executive, said: "Clients look to WPP to help them market, sell and fulfil across multiple e-commerce channels and marketplaces.
"With over £1bn revenue transacting through its platform, Cloud Commerce Group already has demonstrable scale and success in managing the complex omnichannel commerce needs of global brands. I'm excited about how CCG's expertise will further strengthen the breadth and depth of our commerce offering to deliver growth for our clients."
Cloud Commerce Group, which employs more than 100 people across Europe, uses multi-channel e-commerce software that connects brands to European retailers and wholesalers. The platform handles more than £1 billion in gross merchandise value annually through its integrations with marketplaces such as Amazon and eBay and e-commerce platforms such as Shopify and Magento.
(This article first appeared on CampaignLive.co.uk)