Cerebra has announced the sale of a majority stake in the business to leading global communications services company, WPP.
“Cerebra has actively help define the industry of social media communication and social business transformation in South Africa for many years. WPP’s remarkable success in South Africa, their equity footprint in Africa and their global thought leadership in strategic communication make them a relevant and highly suitable partner for us,” says CEO Mike Stopforth.
In a statement, Cerebra said the deal would “take advantage of the growing social media and social business opportunity within South Africa and across the continent. It said the company would be “positioned centrally within WPP to service partners across the group, and will help effect the roll out of social media and social business solutions across the African continent”.
Cerebra declined to answer further questions on the deal sent by The Media Online, saying, “Unfortunately we cannot answer anything out of the scope of the release.”
Cerebra was founded in 2006 and employs around 35 people. It has worked with clients such as Vodacom, Nedbank, Hollard, Absa, and Autopage building, engaging and activating brand communities.
The statement said the investment “continues WPP’s strategy of developing its services in fast-growing and important markets and sectors and strengthening its capabilities in digital media”.
WPP’s digital revenues (including associates) were well over US$5 billion in 2012, representing 33% of the Group’s total revenues of US$16.5 billion. WPP has set a target of 40-45% of revenue to be derived from digital in the next five years.
In South Africa, the Group (including associates) generates revenues of around US$550 million and employs over 25 000 people. Across the continent of Africa, the Group (including associates) collectively generates revenues of US$700 million and employs over 27 000 people.