According to the Business Daily, marketing services firm ScanGroup has planned acquisitions in Nigeria, Angola and Mozambique by year-end as it seeks to serve multinational clients in diverse markets. The company intends to buy controlling stakes in marketing firms in the three countries to give it strategic control in its Pan-African expansion.
In September 2011, ScanGroup in partnership with Ogilvy announced the launch of two advertising firms in Ghana. The move aimed at expanding ScanGroup and Ogilvy operations in the fast-growing continent and serving existing demand for marketing and communication services. The new partnership was in line with ScanGroup’s strategy that aims to create a leading Pan-African communication network and expand its foothold in the West African market. The news of expansion into Nigeria, Angola and Mozambique is in line with in a series of joint ventures by ScanGroup, which is embracing world-class marketing services in the markets in which it operates in sub-Saharan Africa.
The strategy of Pan-African expansion will help ScanGroup to achieve its long-held ambition to diversify its regional presence and reduce its revenue reliance on Kenya where it gets the bulk of its earnings.
The company’s expansion in Africa has helped it firm its grip on lucrative deals from multinationals including Coca-Cola, Nestle, Proctor & Gamble, and Airtel Africa.
ScanGroup is set to announce its results for the year ended December on April 18 and analysts expect it to post strong earnings. Currently its share price is at Ksh 49 per share having steadily increased from Ksh 20 per share in mid-February. This makes it one of the better performing counters at the Nairobi Securities Exchange.