Image Credit: Mert Damlapinar’s LinkedIn
Omnicom has revealed that it has reached an agreement to purchase Flywheel Digital, Ascential’s digital commerce business, for a net cash purchase price of about $835 million. 11 Ascential digital commerce brands were integrated into Flywheel as part of this acquisition under a new entity. With the help of Flywheel’s services, leading brands can sell more products more effectively on hundreds of online marketplaces, including Alibaba, Amazon, and Walmart. This acquisition serves as more evidence of the eCommerce industry’s growing significance. Furthermore, it also underscores the necessity of integrated, data-driven marketing strategies for retail media.
Flywheel at the forefront of digital commerce
Flywheel is the pioneer of digital commerce. It has been creating a range of best-in-class solutions since 2014 that are specifically meant to accelerate the growth of the biggest brands in the world. In addition to media executions, retail commerce operations, and market intelligence, Flywheel employs over 2,000 professionals. Flywheel Commerce Cloud, their cutting-edge technology platform, reinforces these services with near-real-time insights to enhance decision-making and increase sales. This strategic positioning will guarantee Flywheel’s wealth of knowledge and expertise is fully utilized and take advantage of Omnicom’s vast resources. Additionally, it will open up new opportunities for research and dominance in developing digital platforms and markets. Omnicom has shown its willingness to change and grow in the ever-changing world of digital commerce.
Flywheel Commerce Cloud
The business commerce arm has been assembling cutting-edge digital commerce solutions and integrating them into a proprietary platform with a single user interface for the past eight years. Digital marketplaces on the Flywheel Commerce Cloud platform are currently managing tens of billions of product sales and billions of dollars worth of advertising spend. Flywheel Commerce Cloud’s product and transaction data will integrate with Omni’s audience and behavioral data. This will help deliver unparalleled insights and analytics.
Duncan Painter, the current CEO of Ascential, will serve as the leader of Flywheel. It will function as a Practice Area within Omnicom. The acquisition is anticipated to close in the first quarter of 2024. It will be subject to regulatory approvals, customary closing conditions, and assent from Ascential shareholders.
Here’s what they said
John Wren, Chairman and CEO of Omnicom said,
E-commerce sales worldwide are set to increase by 50%, reaching about $7 trillion dollars by 2025. The acquisition of Flywheel significantly broadens our reach and influence in the rapidly expanding digital commerce and retail media sectors, two of the fastest-growing parts of the industry. Together, we will seamlessly integrate our offerings across retail and brand media, digital and in-store commerce, and CRM, ultimately delivering superior results for our clients.
Duncan Painter, CEO of Ascential added,
By connecting Flywheel Commerce Cloud’s product and transaction data with Omni’s audience and behavioral data, we are poised to offer an end-to-end set of services that outpaces the competition. We aim to empower our clients to automate, optimize, and measure their digital commerce and media spend within an increasingly complex marketplace.