Global holding company WPP has bought a 33.3% stake in STW's DTDigital business, one of Australia's largest digital agencies.
DTDigital is closely aligned with STW's Ogilvy Group, working across many of the same clients and campaigns. The deal will see WPP and STW hold the same ownership proportions in both DTDigital and Ogilvy Group, which WPP also owns a 33.3% share in.
DTDigital, which employs 150 staff nationally, expanded its operations to Sydney this month to work with Ogilvy Sydney and OgilvyOne. Its main base is in Melbourne but also has a presence in Brisbane where it works alongside fellow STW agency Junior.
A spokesperson for STW said DTDigital is exploring opportunities in other Australian cities as well as in overseas markets but has no further details at this stage.
STW Group chief executive, Mike Connaghan, said: "It's not in our nature to sell parts of our prized assets but the logic in this instance was overwhelming. DTDigital already partners closely with Ogilvy Group Melbourne, and there are intentions to expand this partnership with Ogilvy to other markets.
"The integrated nature of many of our client campaigns make it absolutely right for Ogilvy that we have DTDigital even further aligned with that business. It's a good deal for all stakeholders."
DTDigital was founded in 1996 by David Trewern, now STW chief digital officer, and was acquired by STW in 2003.
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