United Communications Partners Inc (UCPA)

[naturalborninvestor]

As usual, I like the most what is not said directly, but implied.

- Apparently, these agreements are set up for Nordic clients seeking market entry in the US (cf. Readly, Kanon) to whom TKM may now offer local as well as international campaign management.

- The collaboration with Horizon is instrumental here. Horizon is the fastest growing communications agency in the US (currently employing 800 people, an increase from 500 in 2010).
"Serving each other’s clients with subcontracting services" essentially implies that TKM has access to this pool of resources to run campaigns in the US. It's like expanding to another key market without incurring the cost of direct entry. Revenues are likely shared in this scenario.

- I assume that similar agreements can also be reached with other partner agencies of the Columbus network in different markets if client demand exists. I assume that is essentially what the Columbus network is all about.

- To TKM, this implies an additional competitive advantage over smaller local agencies in their home markets, especially when pitching to larger clients who can afford and are seeking international campaign execution.

- It also means that their inherent disadvantage over international network agencies (like Omnicom, WPP, Interpublic) dissolves, so I expect they will increase efforts to attract international Nordic brands.

- Finally, sharing office space with OT and placing own employees there, the chances for other forms of collaboration between the two entities are very high. I consider OT an excellent partner for a New York based JV agency or even an acquisition target. Apparently, if it's worth to design an entirely new content marketing department around the OT tool and employing people dedicated to it, this must offer a wealth of additional service offerings to existing clients.