The Brazilian company, ABC Group, was purchased by communications conglomerate, Omnicron, in 2015 for an estimated $1 billion. Nizan Guanaes and the Joao Valente, the founders of ABC, have agreed to join Omnicron as part of the deal. That means they will continue leading and managing the company as they have since its founding. The two men founded ABC in 2002 with the full intention of making it one of the biggest advertising firms in the world. And while it hasn’t yet become the largest in the world, it is among the top 20.
It is also the largest in Brazil with 14 different advertising companies. And most of these companies have some really big clients. Much of its present greatness can be attributed to Nizan’s many wise transactions with the Sao Paulo Stock Exchange. So although the price tag was large, it will undoubtedly prove to be a wise and profitable purchase by Omnicron. This is also a very strategic move by Omnicon who did so since ABC was one of its two main competitors. The $1 billion transaction will be finalized in installments with the entire payment process finalized by 2020.
It was not a stretch for Guanaes and Valente to have a goal of making ABC the top advertising company in the world. Brazil has for years been seen as the primary center of world advertising and abounds with individuals and institutions that have great talent in advertising. This has long been the case. ABC and Omnicron did not see the only merger in advertising that went on in Brazil in 2015. That year saw an unusually large number of such transactions. This has been occurring in large part since then because there is a wave of popularity among worldwide companies of reducing costs by combining with each other.