Faaez Samadi
Sep 19, 2017

McKinsey & Co acquires Malaysia's VLT Labs

Purchase is the consultancy’s first digital acquisition in Southeast Asia.

The VLT group, including VLT Labs
The VLT group, including VLT Labs

In the latest move by management consultancies into the marketing and communications industry, McKinsey & Co today announced it has acquired VLT Labs, a unit of independent Malaysian agency VLT.

While the purchase price is undisclosed, VLT chairman Warren Tan told Campaign Asia-Pacific that McKinsey’s offer represented “incredible shareholder value, and we couldn’t turn it down”. It is McKinsey’s first digital acquisition in Southeast Asia.

VLT Labs was established four years ago to focus on the startup community, but also to service large conglomerates in the digital transformation space. The agency’s capabilities are more technology focused, including engineering, UX design, product building and SEO optimisation.

Andrew Tan, VLT Labs CEO, and his 15-strong team will transfer to McKinsey. VLT itself will remain as is, Tan clarified, retaining its brand, clients and stakes in various investments.

“When we set up VLT to build the digital agency of tomorrow, we joked that one day we may even compete with the McKinseys of this world,” he said. “It’s an amazing validation of what we do.”

McKinsey became a VLT Labs client just over a year ago, and approached VLT about the acquisition not long after.

Tan said the deal is an “incredible opportunity for our colleagues on a global platform” that represents a shift in the recent landscape, as both VLT and VLT Labs have been engaged more and more by management consultancies in the past few years.

VLT is making developments of its own. Following its Cambodia entry with MSA, VLT is close to completing “a couple of regional acquisitions, which will boost our capabilities to a new level”, Tan said. 

Source:
Campaign Asia

Related Articles

Just Published

7 hours ago

As US slams door, can the rest of the world offer ...

Or is this just another dead end? The party seems to be over, writes Ian Whittaker, as Chinese ecommerce giants scramble amid the US crackdown.

8 hours ago

ROI index charts rise of Moloco and Reddit ...

Whilst smaller ad networks reshape the mobile ad landscape with high returns, X’s reliance on gambling and adult content points to a more polarising path forward.

8 hours ago

Telstra unveils cinematic silent films—as a ...

Weird and whimsical, and a welcome break from the usual ‘put your phone away’ lecture, even if Ad Nut is not entirely sure what’s happening in this campaign.

9 hours ago

Spikes Asia Debrief set to unpack the new creative ...

This afternoon, Spikes Asia jury members will dig into key themes emerging from this year's shortlists. Register to join the event.