Publicis Groupe has acquired U-Link Business Solutions Co. Ltd (UBS), one of the leading Chinese agencies specialised in healthcare communications.

UBS will become part of Publicis Healthcare Communications Group (PHCG) and will be renamed UBS Saatchi & Saatchi Health.

Founded in 1997, UBS employs approximately 170 people at its Shanghai headquarters and Beijing office. UBS offers PR, events management, medical association relationships and brand management to its clients, which include Abbott, GenSci Pharmaceuticals, Johnson & Johnson, Novartis, Novo Nordisk, Pfizer, Roche, Wyeth and Xian-Janssen.

The Chinese healthcare market is one of the fastest growing in the world” declared Nick Colucci, CEO and President of PHCG: “Adding UBS to our portfolio brings the Saatchi & Saatchi Health flagship brand to China, and will make PHCG one of the largest healthcare communications groups in the region.”

UBS co-founder and CEO Frank Xu will remain at the helm, taking the title of Managing Director and reporting directly to Ash Kuchel, President of PHCG Asia Pacific region.

With UBS’s acquisition PHCG continues its expansion in Asia, following its recent acquisitions of Beijing Dreams Advertising and Beijing Dreams Zhiyang Communication (May 2011) and the India-based Watermelon agency (March 2011).

This is the latest in a series of China agency additions for Publicis Groupe that includes Wangfan and Gomye (November 2011), Genedigi (June 2011), Dreams (May 2011), Interactive Communications Ltd (February 2011) and Eastwei Relations (November 2010).

France, Paris & China, Shanghai

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Publicis Groupe full year and fourth quarter results

Publicis Groupe has reported results for the full year and fourth quarter ended December 31, 2011.

Publicis Groupe is the most active acquirer by volume in the Media and Marketing industry between 2009 and 2011 with 39 transactions, 24 of which were announced or closed in 2011. A list of Publicis Groupe acquisitions articles published on Fusion DigiNet is at the end of this article.

“In a context of sovereign debt crisis and economic slowdown, Publicis has not only outperformed the market, more remarkably it has improved on its own outstanding performance of 2010. The Group’s margin, which has improved very satisfactorily, is back on the 16% mark while we continued investment in technology and talent,” said Maurice Lévy, Chairman & CEO of Publicis Groupe. “We have continued to pursue our strategy of making targeted acquisitions in digital communications and high-growth countries.”

KEY FIGURES

ANALYSIS OF THE KEY FIGURES

  • Published growth             +7.3%
  • Organic growth                +5.7%
  • New Business (net)         $7.9 bn
  • Operating margin            +8.8%
  • Net income                         +14.1%
  • EPS                                       +12.3%
  • Free Cash Flow                 +9%

ACQUISITION ACTIVITY

Since the start of 2012, Publicis Groupe has made two acquisitions:

  • Mediagong in France: a digital agency specialised in digital strategy consulting, the social media,advergaming and mobile communications.
  • The Creative Factory in Russia: highly reputed in its specialized areas, namely, marketing, digital services, digital production and video. This Moscow-based agency will enable Saatchi&Saatchi to expand its foothold in Russia.

In addition to these two acquisitions, Publicis Groupe has launched a friendly takeover bid on Pixelpark, the independent German leader in digital communications.

Pixelpark’s core businesses range from the creation of digital brands, consulting, content management, the social media, mobile marketing, eBusiness solutions and data analysis and management. Publicis Groupe’s public offering has the support of Pixelpark AG’s Management Board and Supervisory Board. The bid will be tabled by the Groupe’s German subsidiary MMS Germany Holdings GmbH (MMS) registered on the Dusseldorf trade register under the reference HRB 50291. MMS will offer Pixelpark (ISIN DE000A1KRMK3) shareholders a consideration of 1.70 euro per share in exchange for their bearer shares of no nominal value. This offer is at a premium of some 28% over the estimated average share price of Pixelpark (1.33 euro) as traded on the German stock exchange during the three months up to January 20, 2012. The offer is scheduled to begin in mid-February. To date, the shares tendered by Pixelpark shareholders to MMS represent approximately 56.51% of the authorize share capital and voting rights. Among others conditions precedent, the bid will be subject to MMS acquiring at least 75% of the current share capital. The acquisition by MMS of the majority of Pixelpark shares must also be approved by Germany’s Federal Cartel Office.

On February 1, the Group announced the acquisition of Flip Media, one of the large digital agency networks in the Middle East. Flip Media is present throughout the digital chain, offering a comprehensive range of services from strategy, digital design and production, content to technological platforms. With an original, proprietary creation technology that has received many awards, Flip Media words with a number of emblematic brands.

Click here for the full Publicis Groupe announcement and fouth quarter information.

France, Paris

A list of all Publicis Groupe aquisition activity published on Fusion DigiNet is below.

Smart Business Network acquires OnMark Solutions

Smart Business Network has acquired OnMark Solutions, a full-service e-marketing services company in Cleveland.

“We’re excited to add OnMark Solutions’ extensive e-marketing knowledge to our team,” said Fred Koury, President and CEO of Smart Business Network. “Their proven track record for producing creative and effective e-messaging strategies and programs for B2B and B2C clients will be a great complement to our talent base.”

OnMark Solutions’ client list includes a broad range of organisations, including Peeps Candy Co., American Red Cross, Achievement Centers for Children, BioPlastics and The Smithers Group. As part of the acquisition, OnMark Solutions founder Kristy Amy will join Smart Business Network as vice president of business development.

The OnMark Solutions acquisition was the third in the past year for Smart Business Network, which previously acquired the custom content firm Wise Group in January 2011 and digital design firm Flique Creative in August 2011.

USA, Cleveland, OH

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The Jim Pattison Group acquires magazine distributor Comag Marketing Group

 The Jim Pattison Group, a privately owned, Vancouver, BC-based conglomerate which owns The News Group, has acquired the national magazine distributor Comag Marketing Group, LLC (CMG) from Hearst Magazines and Condé Nast. Terms were not disclosed. Jay Felts will continue as president of CMG and the firm’s headquarters will remain in Princeton, New Jersey.

CMG U.K. is not part of the transaction and will continue to be owned by National Magazine Company Ltd. and Condé Nast U.K.

Michael Korenberg, deputy chairman of The Jim Pattison Group and a member of its Board of Directors, said, “This transaction will strengthen the newsstand channel and, at the same time, enable Hearst and Condé Nast, as publishers, to focus on their core competencies — editorial development, retail marketing and consumer promotion. We believe that with the strength of its management team and systems, CMG can consolidate and improve publisher services as well as add stability for all stakeholders in the single-copy marketplace.”

Canada, Vancouver, British Columbia & USA, Princeton, New Jersey

Publicis Groupe acquires The Creative Factory for Saatchi & Saatchi Russia

Publicis Groupe has acquired The Creative Factory (TCF), a marketing and advertising agency in Moscow with a strong track record in specialty areas such as trade and shopper marketing, PR and event management, digital and digital production, and video production. TCF will be fully integrated into Saatchi & Saatchi Russia.

Founded in 2001, TCF and its 48 communication professionals work across standard mass media and innovative sectors — offering clients such as Burger King, IKEA, JTI (tobacco), John Deere, Nike, Rehau (plastics), Tele2 (telecommunications) and UNIQLO true “through-the-line” solutions. This offering is highly complementary to Saatchi & Saatchi Russia’s strength in traditional media and its work for clients such as The Coca-Cola Company, Dixy, Emirates Airlines, Friesland Campina, JTI, Kraft Foods, Procter & Gamble, Novartis Pharmaceuticals and Twinings Tea. In the last three years its revenue has grown by over 30%.

TCF’s founders, Alex Shifrin and Sam Rothman, will stay on with Saatchi & Saatchi as Managing Directors and will report toShannon Cullum, Saatchi & Saatchi Russia’s CEO.

Its no secret that the global marketing landscape is changing dramatically, and Russia is changing faster than most, said Robert Senior, Saatchi & Saatchi CEO for EMEA. We need to offer our clients the unreasonable power of creativity in all its forms, which means continuing to move out of traditional thinking and traditional media, and more and more into areas where The Creative Factory excels.

France, Paris & Russia, Moscow

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ePrize acquires mobile solutions Company Cellit

ePrize, a digital engagement agency specialising in interactive mobile, social media, and web campaigns, has acquired Cellit, a Chicago-based mobile marketing agency.

Cellit’s expertise in mobile marketing and customer relationship management (CRM) solutions include short message services (SMS), mobile-optimized sites and mobile applications.

“Rapid consumer adoption of mobile technology is fundamentally changing how brands engage and inform the public about new products and services,” said Matt Wise, ePrize CEO. “MMA Global reported that 83 percent of mobile users take their phones with them everywhere; and CTIA reports that 74 million people in the U.S. have opted in to text messages from marketers. Brands with a mobile component in their campaign have a huge opportunity to capture consumers wherever they are and whenever they’re ready.”

In 2012, ePrize expects mobile revenue to triple as a result of the Cellit acquisition. Administering four-times more national promotions than any other company, ePrize forecasts that 80 percent of campaigns will incorporate a mobile component developed by ePrize by the end of 2012, growing from 20 percent in 2011.

This marks the second acquisition in six months for ePrize, after acquiring the customer relationship management division of Apollo Data Technologies in July 2011.

Through the acquisition, Cellit now is a division of ePrize named “Cellit: ePrize Mobile Solutions.” David Wachs, founder and president of Cellit, has joined the ePrize executive team as senior vice president of Mobile, and general manager of Cellit. Cellit offices and the company’s 16 employees will remain in Chicago, with plans to combine office space with ePrize’s Chicago team in the near future.

USA, Pleasant Ridge, MI & Chicago, IL

Ogilvy buys 33.3% stake in DTDigital

Ogilvy & Mather has acquired a 33.3% position in STW’s digital communications firm, DTDigital.

Australian digital agency DTDigital joined STW Group in 2003 and during the next eight years grew revenues from $1 million per annum to forecast revenue for 2012 of $14 million. Clients include Bunnings, Myer and NAB.

For the past four years, DTDigital has been working alongside Ogilvy in Melbourne. Today DTDigital has more than 110 full-time staff in its Melbourne office. STW Group owns 66.7% of Ogilvy Group Australia, with WPP holding the remaining 33.3%. The investment by WPP in DTDigital brings its ownership in line with that of Ogilvy Australia.

“Ogilvy know brand, social and CRM while DTDigital provides great digital, channel and technology skills making the combination a winning formula. We have worked in partnership for the past four years and acquiring part of DTDigital cements that relationship, allowing us to offer first class integrated digital to clients inside Australia and across Asia,” said Paul Heath, CEO, Ogilvy & Mather Asia Pacific.

Australia, Sydney

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Publicis Groupe acquires Mediagong

Publicis Groupe has acquired French digital agency Mediagong.

Founded in 2002, Mediagong employs some 50 communications professionals on the conception and development of innovative digital tools and interactive campaigns. Mediagong will retain its current name and will continue to operate under the leadership of its founding partners Guillaume De La Brosse, David Oks and Olivier Zetlers. They will take the title of Deputy Managers of Mediagong, an entity within Groupe Leo Burnett France, and will report to Jean-Paul Brunier, President of Groupe Leo Burnett France.

Mediagong has demonstrated strong growth (more than 25% in 2011) and is particularly noted for its creation of vivid, playful and highly interactive narrative campaigns.Its many core sectors include digital and community strategizing, social media, the development of brand content, advergaming and mobile. Mediagong’s client list is particularly strong in the food, beauty and luxury industries, as well as financial services and retail, and includes market leaders Accor hotels, Bel, Crédit Agricole, Danone, Dessange International and Lindt. Mediagong will be aligned with Leo Burnett France, one of the top ten full-service agencies in the country, which has experienced very high growth over the past two years.

“Mediagong is a smart young company with a track-record that’s already very solid and a management team that is very impressive indeed,” said Jean-Paul Brunier, President of Leo Burnett France. “They’re energetic, rigorous, structured and driven to achieve high levels of return on investment for their clients. Every project they undertake is carried out with the same passion for perfection. Digital has become key to our clients, and the French market has the potential for strong growth. This strategic acquisition means Leo Burnett will be among the very few full-service agencies with such a strong grounding in digital expertise.”

France, Paris

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Rauxa acquires digital firm ThoughtMatrix

Rauxa, a full-service direct marketing agency, has acquired ThoughtMatrix, a San Francisco-based digital design and development firm. The deal will expand Rauxa’s portfolio of digital and integrated services.

“This acquisition will expand Rauxa’s service footprint and continues our growth and evolution in digital services,” Rauxa CEO Jill Gwaltney said. “We strive to make our clients’ marketing dollars more productive, and we’ll expand upon this by adopting and delivering the latest in digital marketing capabilities.”

The two agencies will operate in their current locations until mid-2012, when Rauxa’s San Francisco office will combine with ThoughtMatrix in a new location. Terms of the deal were not disclosed.

Founded in 2003 by Tony Rems and Trevor Fagerskog, ThoughtMatrix employs 44 people. Clients include Autodesk, Mattel, Levi’s, Dannon, Cisco, eBay, Expedia and PayPal. Rems, the former CTO of Razorfish, will assume the role of senior vice president of technology at Rauxa, while Fagerskog will become senior vice president of operations.

USA, Costa Mesa, CA & San Francisco, CA

UK private equity investment in the £10M-£10OM market grows by 44%

Data from the Lyceum Capital and Cass Business School UK Growth Buyout Dashboard shows that the UK has reinforced its position as the preeminent market for private equity investment in Europe, with activity in its lower mid-market having continued its strong recovery in 2011 to pre-recession levels of almost 100 deals.

Highlighting the segment’s robustness despite macro-economic challenges, the UK Growth Buyout Dashboard, revealed 44 per cent growth in the total number of transactions last year to 91, compared to 63 in 2010 and 34 deals in 2009.

The quarterly data, which analyses UK-headquartered private equity control deals in the £10 to £100 million enterprise value space, also shows that total deal value has more than trebled over the past three years, with aggregate values in excess of £3.4 billion last year compared to over £2.2 billion in 2010 and just above £1.0 billion in 2009.

Technology, media and telecommunications (TMT) was the stand-out sector – a trend which is likely to continue, driven by growth in innovative IT solutions such as cloud computing and mobile business applications. 26 TMT deals completed during 2011, contributing to 29 per cent of completed transactions, compared to 11 a year earlier and just four in 2009.

Click here to read the full UK Growth Buyout Dashboard.

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