WPP acquires majority stake in Middle Eastern digital agency

WPP Group's Grey agency has acquired a majority stake in Hug Digital, a digital marketing agency based in Dubai.

Financial terms of the deal were not disclosed. Last year Hug reported revenues of just below £4m.

Hug, via its 145 full-time staff across the UAE, Egypt and India, provides digital campaigns, social media, content, influencer and activation marketing, web and mobile app development, media planning and buying, digital research, analysis and social listening.

Nirvik Singh, chairman and chief executive officer of Grey Group, said the acquisition "enhances our leadership position in the MENA creative and digital space. It underscores Grey's commitment to expand our offering and deliver quality, value-added services to our clients."

WPP said it was on track to meet its target of 40-45% of its revenue being derived from digital markets in the "next four to five years," and that revenue from hug, whose clients include Dubai Tourism Shell would "continue WPP's strategy of developing its services in important markets and sectors and strengthening its capabilities in digital marketing and media."

AS of 1210 BST, WPP shares had remained stable, up 0.64% to 1,581.00p.