Publicis Groupe acquires stake in Palestinian agency
19 June 2012
Publicis Groupe is entering Palestine with the acquisition of an equity stake in a creative agency based in Ramallah on the West Bank.
The holding group has bought a 20% stake in Zoom Advertising. Under the terms of the agreement, the agency will be renamed Publicis Zoom and will be aligned with the Publicis Worldwide global network. Publicis also has the option of increasing its participation in the future.
Zoom Advertising was founded in 2004 and its staff of 23 service client roster that includes the Bank of Palestine, Coca-Cola, the European Union, UNICEF and Peugeot. The current executive team remain in place.
"Today's deal is a key step towards fostering an enabling business environment for private sector growth and development, and I am confident that more investments like this one are on the horizon,” says Zoom chairman of the board Bashar Masri. “The fact that a Palestinian company passed the rigorous due diligence procedures of a global, publicly-listed company like Publicis Groupe should send a very strong message to the Palestinian private sector.”
Publicis Groupe also recently acquired BBR in Israel and has a presence in the UAE, Egypt, Jordan, Kuwait, Saudi Arabia and Qatar.
"Today's transaction is important on several levels," says Publicis Groupe chairman and chief executive Maurice Lévy. "One key element, of course, is Publicis' desire to serve our clients wherever they work. But the impact of this operation extends much further than that. It comes immediately after our announcement of the acquisition of BBR in Israel; symbolically, this speaks to every man's dream of seeing peace in the Middle East and between the Palestinian and Israeli peoples. Moreover, it is also a call to French and international companies to set up in the region and to contribute to creating the economic development without which there can be no durable peace."
David Hing, London