WPP's J Walter Thompson to buy US digital agency iStrategyLabs

WPP’s wholly-owned global market communications agency J Walter Thompson has agreed to buy full service US digital agency iStrategyLabs (ISL) for an undisclosed sum.

Based in Washington with an office in New York and 80 employees, ISL generated net revenue of $12.4m as of 31 December. Its clients include grocer Kroger, Medtech and USA Network.

The FTSE 100 media agency said the acquisition continues its strategy of investing in key sectors, such as digital, and important markets such as the US.

WPP’s digital revenues were over $7bn in 2015, representing 37% of the group's total revenues of $19bn. The company has set a target of 40-45% of revenue to be derived from digital in the next five years. In the US, WPP companies including associates and investments collectively generate revenues of more than $7bn, with over 25,000 employees.

At 1330 BST, WPP shares were down 0.4% to 1,689.82p.