WPP PLC (LSE:WPP) said it is acquiring Latin American ecommerce agency Corebiz, its second acquisition in technology, for an undisclosed amount.
In nearly 18 months since buying a software company in Brazil, the British advertising group is expanding its technology portfolio.
Corebiz specialises in Vtex implementation, a platform that uses cloud infrastructure as an ecommerce solution, and is among the largest digital commerce platforms in the region.
The deal underlines the advancement of advertising groups over technology services, as well as the importance of digital areas in WPP's customer service strategy.
"It is aligned with WPP's accelerated growth strategy, building on existing capabilities in the areas of commerce and technology," said WPP, one of the largest communications groups.
Corebiz, founded in 2013, was listed on the New York Stock Exchange last year, and has over 600 employees in Latin America.
For WPP, one of Corebiz’s attractions is its expertise in Vtex technologies already used by many WPP clients, making the acquisition strategic in gaining critical market share.
The company will strengthen WPP's digital commerce capabilities in Latin America and join the VMLY&R Commerce global network.
Corebiz deals with corporates such as Whirlpool (NYSE:WHR), Casino Group, Walmart Inc (NYSE:WMT), Carrefour, Decathlon and Estee Lauder Companies Inc (NYSE:EL) and helps reduce time-to-market and reach audiences across multiple channels.
"Companies both in Latin America and around the world are looking to grow their ecommerce capabilities, having seen over the last two and half years the impact that strong digital commerce strategies can have on business growth," said Stefano Zunino, country manager for WPP in Brazil, in a statement.
"Over the last few years, we have actively participated in the acceleration of the ecommerce market in Latin America. Now, our goal is to take this expertise to the rest of the world," added Felipe Macedo and Renan Mota, founders and co-chief executives of Corebiz.