Knowledge Networks acquires Hispanic consumer researcher Garcia Research Associates

Knowledge Networks has acquired Hispanic consumer researcher Garcia Research Associates (GRA).

Founded in 1990, GRA conducts research for Fortune 500 companies and organisations involved primarily in the Hispanic community. GRA will maintain its home office in Burbank, CA; Knowledge Networks will fully utilize GRA’s operations center in Tijuana, Mexico.

With the addition of GRA’s experts, Knowledge Networks will have 15 full-time staff in its Hispanic research team. The acquisition of Cada Cabeza, along with KnowledgePanel LatinoSM and the National Shopper Lab, strengthens Knowledge Networks ability to reach U.S. Hispanic segments.

“The need to find ever more sophisticated ways to understand the U.S. Hispanic population – especially those in Spanish-dominant or bilingual households – has been our priority for years,” said Knowledge Networks CEO Simon Kooyman. “GRA shares our focus and our passion for making insights actionable for clients of all types, and Cada Cabeza provides an excellent complement to KnowledgePanel Latino. I am pleased to welcome Carlos and his team to Knowledge Networks.”

USA, New York, NY & Burbank, CA

Experian acquires Virid Interatividade Digital, a permission-based email marketing company

Information services company Experian has acquired Virid Interatividade Digital Ltda, a permission-based email marketing company in Brazil.

For the year ending 31 December 2010, revenue for Virid was R$9m (c.US$5m). Gross assets as at 31 December 2010 wereR$2m (c.US$1m).  Virid was acquired from its founding shareholder and management. The acquisition has been funded from Experian’s existing cash resources.

Founded in 1996, Virid is Brazil’s largest email marketing service provider, offering email delivery, email based behavioural segmentation, real-time campaign reporting, mobile delivery and social media integration. The company has over 800 direct and 3,000 indirect clients including retailers, advertising agencies and news organisations.

The acquisition is a further step in Experian’s strategy to expand its targeted digital marketing activities globally. It extends the geographic reach of Experian’s email marketing business into the key market of Brazil, where Virid will become part of Experian’s Marketing Services business in Latin America.

“This acquisition underlines Experian’s commitment to providing domestic and international brands in Brazil with innovative digital marketing services. Following the successful launch of Experian Hitwise, our digital marketing intelligence service, the addition of Virid to our portfolio offers organisations the very best in email marketing to help them achieve a high return on investment from their marketing spend,” said Juliano Marcilio, president of Experian Marketing Services, Latin America.

“As the largest global technology services provider focusing on the integration of email, social media, mobile and display marketing, we’re excited to expand our capabilities and service philosophy to the Brazilian market, and to our international clients who have customers in Brazil,” said Matt Seeley, group president, Experian Marketing Services North America. “Email marketing has the highest ROI of any other digital marketing channel and acquiring Virid ensures this trend will continue in Latin America.”

USA, New York, NY & Brazil, São Paulo

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USA: Publicis acquires an equity stake in social media agency Big Fuel

Publicis Groupe has acquired an equity stake in Big Fuel, the New York-based social media agency. According to the terms of the agreement, Publicis Groupe immediately acquires 51% of the new agency, and has the possibility of increasing its participation to 100% from 2014. Big Fuel will be aligned under the VivaKi organization and serve as a strategic social media “center” for the VivaKi agencies Digitas, Razorfish, Starcom MediaVest Group and Zenith Optimedia, complementing their existing teams.

With more than 170 employees, Big Fuel is a pure-play social media agency, with all employees dedicated to providing clients with social media services including strategic, creative, distribution, management and analytics. The company has grown from 30 employees in early 2010, and its 2011 revenue is expected to reach nearly $30M, a 500% increase year-on-year. It has been named social media agency of record for some major marketers, including GM and T-Mobile. Big Fuel also works with Colgate-Palmolive, Microsoft, Clorox, Children’s Place, Gore-Tex and Philips.

Big Fuel is headed by Jon Bond, CEO, who assumed the role in January of 2011. Bond runs the agency in partnership with Avi Savar, founding partner and Chief Creative Officer, and Mike McGraw, managing partner and COO.  Big Fuel will report into the VivaKi organization through Laura Lang, global CEO of Digitas and member of the VivaKi Board of Directors.

“Big Fuel is a dynamic social media agency with a scalable model that encompasses social tools, process, a content studio and a distribution network. As a result, it will extend the creative and content resourcing of Digitas and Razorfish,”said Laura Lang.  “They specialize in taking brands from content to commerce, and their social media operating system has earned them Social AOR status with some of the world’s most powerful marketers.  Sitting inside VivaKi, with its powerful media and digital agency networks, Big Fuel gives us unprecedented Paid, Owned and Earned capabilities, further enhancing the social media strategies of its sister agencies.”

Jon Bond, CEO of Big Fuel, says the deal will help support Big Fuel’s rapid organic growth. “Big Fuel’s founder Avi Savar had the vision to create one of the first full-service social media agencies,” said Bond.  “Now that social is revolutionising global marketing, this partnership gives the agency and its clients scale, impact, and a network around the world.”

France, Paris & USA, New York, NY

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Sandow to acquire branding agency Seesaw

Sandow is to acquire Seesaw, a leading full-service digital strategy and media agency built on brand development and product innovation, graphic and industrial design and full-service web, design and development. Seesaw will be re-branded as Wonder. Terms of the deal were not disclosed.

Wonder strengthens and extends the marketing platform Sandow, coming shortly after the recent acquisitions of Materials Connexion and Culture & Commerce. While Wonder will remain primarily externally focused, it will also provide a range of marketing services to support and enhance the Sandow brands.

“Wonder is a unique company that understands the value of innovation, which is why they will be a core asset to Sandow,” saidAdam I. Sandow, Chairman and CEO of Sandow Media. “This acquisition shows our commitment to expanding our presence within the branding, design and digital industry, and our integrated resources will lead to substantial agency growth under the leadership of Randy Herbertson and Chris Dowling.”

USA, New York, NY

 

Publicis Groupe acquires a majority stake in DPZ

Publicis Groupe has acquired a majority stake in DPZ, one of Brazil’sleading advertising agencies. According to the terms of the agreement, Publicis Groupe immediately acquires 70% of the new agency, and has the possibility of increasing its participation to 100% over the next two or three years. DPZ will retain its name and will operate within Publicis Groupe on a stand-alone basis.  The agency remains under the leadership of its three foundersRoberto Duailibi, Francesc Petit and José Zaragoza, and the management of current CEO Flavio Conti.

Founded in 1968, DPZ is one of the largest independent advertising agencies in Brazil with approximately 230 employees. The agency is headquartered in São Paulo, with offices in Rio, Brasilia and Vitoria. DPZ’s key clients include prominent international and local brands such as Azul Linhas aéreas (airline), Bombril (cleaning products), Campari, Coca-Cola, Itaú (banking), Sadia (food and beverage), Vivo (telecommunications). The agency has seen double-digit organic growth over the past three years, and DPZ’s 2011 revenue is expected to reach €40 M, with margins above those of Publicis Groupe’s average.

DPZ has received a long list of industry accolades, making it one of the most-awarded agencies in Brazil. Known for its innovative and irreverent style, the agency won its first Cannes Lion in 1972, and Brazil’s first gold Cannes Lion in 1975.  DPZ has also been repeatedly recognized at the Brazilian “Colunistas” award, the most important award within the Brazilian ad industry, as well as the “Cabore” awards (another very important national award). The agency’s well-established reputation illustrates its strong and lively creativity.

The history of DPZ is intertwined with the history of Brazilian advertising. DPZ has not only become an icon for the advertising industry in Brazil, but also a reference in Brazilian advertising for the rest of the world. During its 43 years of history, DPZ has participated in creating prestigious brands and some of the most memorable campaigns and characters of Brazilian advertising. DPZ has also served as a university for Brazil’s marketing community, as many of the country’s leading ad men and women initially trained at DPZ.

The acquisition of DPZ illustrates Publicis Groupe’s strategic commitment to expanding its operations in the dynamic Brazilian market and across Latin America. Today’s announcement is the fourth transaction for Publicis Groupe this year in Brazil, following the acquisitions of Tailor Made and GP7, as well as the increased participation (60%) in Talent Group.

According to the most recent ZenithOptimedia forecasts (April 2011), Brazil will have a 9.5% increase over the course of 2011, followed by 7.0% and 7.2% growth in 2012 and 2013 respectively. Brazil is growing fast and is expected to become the sixth ad market in the world in 2011. Brazil is already Publicis Groupe’s sixth largest market with nearly 1,500 permanent employees throughout the country.

Maurice Lévy, Chairman & CEO of Publicis Groupe declared, Our strategy is to strengthen our two pillars of growth: digital and fast-growing markets. Brazilalong with China are of utmost importance to Publicis Groupe. This acquisition is a key step of our expansion into this promising market. DPZs exceptional creativity and iconic status put Publicis Groupe in a stronger position to provide the very best to our clients and to attract talent and grow organically. We are proud that DPZ – after a thorough process –chose to join Publicis Groupe, and we are pleased to welcome the agencys management and teams on board.  We are committed to Brazil not only because of the exceptional growth of this important market, but also because it is a formidable reservoir of talent and a country of entrepreneurs with great brands and ambitious companies.

The founders of DPZ, José Zaragoza, Francesc Petit and Roberto Duailibi added, “We are very happy about joining Publicis Groupe and adding to its global reach and considerable resources. DPZ sees this association as a wonderful opportunity for both our teams and our clients, especially given the powerful resonance of the Publicis Groupe brand all over the world.”

France Paris & Brazil, São Paulo

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Diversified Global Holdings Group acquires a majority stake in online marketing Firm Miralab

Diversified Global Holdings Group has completed the acquisition of a 51% majority ownership stake in internet marketing business Miralab.

Miralab was founded in 2008 under the name Promium.ru and is headquartered in Moscow. Miralab provides SEO, SEM and web analytics.

Under the terms of the agreement DGHG will be partnered with RBS Corporation who purchased a 30% stake in Miralab in the second quarter of 2011. RBS was founded in 2004 and is an internet marketing company with over 8 million users, approximately $200 million in annual revenues and 370 employees. Prior management of Miralab retained 19% ownership.

“This acquisition brings long term value to DGHG as an accretive acquisition but we also expect to see an immediate effect on our business consulting services segment as we can now provide companies with greater access to the Russian markets,” said Richard Lloyd, CEO of Diversified Global Holdings Group.

DGHG and RBS intend to quickly expand into the Social Media Marketing sector. The group also projects that Miralab’s revenues will increase approximately 68% in 2012 due to the execution of several new contracts including one recently signed with Panasonic. Miralab currently serves 50 customers.

USA, Orlando, FL & Russia, Moscow

 

Publicis Groupe takes a majority stake in longterm affiliate Spillmann/Felser/Leo Burnett

Publicis Groupe has taken a majority stake in its longterm affiliate Spillmann/Felser/Leo Burnett, one of the biggest advertising agencies in Switzerland. Until now, Publicis Groupe has had a minority (40%) stake in the agency, and this transaction increases the Groupe’s participation to 100%. Spillmann/Felser/Leo Burnett will continue to align under the Leo Burnett global network.

Andy Stäheli, previously the agency’s Managing Director, will take over the company leadership from Peter Felser, and Peter Brönnimann succeeds Martin Spillmann as Creative Director. Spillmann and Felser will withdraw from day-to-day business operations, and will remain members of the Executive Board. Andy Stäheli will now report to Giorgio Brenna, CEO of Leo Burnett’s continental Western Europe region.

Founded in 2002, Spillmann/Felser/Leo Burnett is a full-service advertising agency based in Zurich, Switzerland. The agency employs nearly 80 communications professionals and provides the full range of advertising and communication services, including below-the-line and digital services. Key clients include ABB, Emmentaler Cheese, Fleurop, Lindt Chocolate, Postshop, Switzerland Tourism, Switzerland’s Cantonal Banks, Swiss Life (insurance) and Volvo.

Spillmann/Felser/Leo Burnett is the only Swiss agency to appear in the Top 3 on a national level for creative performance, earnings, as well as efficiency and reputation rankings. The agency is known for cross-media-campaigns and some of its popular campaigns include work carried out for Switzerland Tourism (“Mountain Cleaners”, “Holidays without Facebook”), Mammut (“Mary Woodbridge”) or the “SMS dialogues” for Swiss Telecom provider Sunrise (“Campaign of the year 2010”awarded by trade magazine “Werbewoche”). The agency has won 7 Cannes Lions for campaigns for Switzerland Tourism, Sunrise, Migros Fashion (“Real singles in underwear”), the left weekly WOZ (“WOZ buys UBS”), Cabaret Voltaire, Helvepharm (“The modest pharmaceutial company”).

Giorgio Brenna, Leo Burnett’s CEO Continental Western Europe Region, “Since its foundation in 2002 Spillmann/Felser/Leo Burnett has repeatedly impressed us with its creative power and how quickly it became the third largest agency in the country. The agency is one of our “Centers of Excellence” and underlines both our reputation as a creative network in Europe as well as the importance of great brand ideas for our clients.”

Andy Stäheli, CEO of Spillmann/Felser/Leo Burnett: “The Leo Burnett philosophy 100% matches our perspective on success-based communication. No other agency group devotes so much attention to the creative product. We are very much looking forward to sharing our ideas with like-minded people within the network as well as further profiting from their tools and experience.”

France, Paris & Switzerland, Zürich

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Net Communities acquires Podcast Voices and Video

Net Communities has acquired Podcast Voices and Video, a production business specialising in the production of online audio and video.  Podcast Voices was established in 2005 when the word Podcast had just been invented, since then its clients have included leading advertising agencies and brands such as Lonely Planet, Sunday Times Destinations Show, MPH / Top Gear Live and Imago Tech Media (UCExpo/IPExpo). Terms of the deal were not disclosed.

Podcast Voices Production Director and former shareholder said: “We are very excited about becoming a part of the Net Communities family, we have years of experience in producing online audio and video for a range of great clients, this move now gives us the opportunity to extend our offering to include the marketing and promotion of the audio and video programmes we create for our clients.  In addition we will now bring our skills in-house to enable the launch of sites like www.TechBuff.com, Net Communities new Photo and Video reviews site.”

Andy Evans Managing Director of Net Communities added “Wayne and his team are highly skilled in online audio and video production, we’ve used their services many times for bespoke projects created for clients like Sony Ericsson www.idealdayout.com and even for our own home page animated video.  I’m over the moon that we can now deliver in-house audio and video productions when creating innovative marketing solutions for our clients.”

UK, London

Digital media services business DG to acquire MediaMind

DG, a provider of digital media services to the advertising, entertainment and broadcast industries, is to acquire and MediaMind Technologies, a global provider of integrated digital advertising solutions, in an all-cash transaction.

MediaMind is headquartered in New York, it has 37 sales and representation offices covering 64 countries. In 2010, MediaMind delivered campaigns for 9,000 brand owners using approximately 3,800 media and creative agencies across 8,200 global web publishers in 64 countries.

DG has offered to purchase all of MediaMind’s outstanding shares for $22.00 per share in cash. The total transaction value is $517 million equity value or $414 million enterprise value, taking into account over $100 million in cash on MediaMind’s balance sheet. The board of directors of MediaMind are recommending that MediaMind shareholders tender their shares in the tender offer.

Upon closing, Gal Trifon, President and CEO of MediaMind, will serve as DG’s Chief Digital Officer, leading DG’s online advertising business. Additionally, Ofer Zadikario, MediaMind’s Chief Solutions Officer, will join DG in the same position.

Scott Ginsburg, Chairman and CEO of DG said, “With its new global reach and enhanced product offerings, DG will gain critical mass and will have the unique ability to provide a suite of cross-platform advertising management and distribution services.”

Neil Nguyen, President and COO of DG said, “We are extremely pleased about this transaction, which greatly accelerates our international and digital growth strategy.

For the twelve months ending March 31, 2011 the companies had in excess of $100 million in digital advertising revenue on a pro forma basis. With the MediaMind acquisition, DG expects to realise approximately $15 million in cost synergies identified to date, with clear opportunities for enhanced revenue growth. The transaction will be funded by a combination of available cash and fully committed debt financing from JPMorgan Chase & Co. and Bank of America Merrill Lynch. MediaMind shareholders holding approximately 8.2 million common shares outstanding and 1.8 million options, as well as certain officers and pre-IPO investors, have agreed to tender their shares in the offer.

Goldman Sachs & Co. and Bank of America Merrill Lynch acted as financial advisors and Latham & Watkins provided legal advice to DG. Qatalyst Partners acted as financial advisor and Davis, Polk & Wardwell LLP provided legal advice to MediaMind. The transaction is expected to close in the third quarter 2011.

USA, Dallas, TX & New York, NY

Reply.com completes acquisition of MerchantCircle Acquisition

Reply! Inc., a marketplace for the acquisition of locally-targeted consumer traffic, has completed the acquisition of MerchantCircle, the largest online network of local business owners in the USA. Reply! has acquired MerchantCircle for about $60 million in cash and stock.

“We are pleased to have closed the MerchantCircle acquisition so quickly and we are excited to welcome MerchantCircle’s highly talented team into the Reply! family,” said Reply! founder and CEO Payam Zamani. “We believe the addition of MerchantCircle creates a perfect complement to our platform of locally-targeted online marketing solutions and will allow us to transform the way millions of merchants connect to consumers.”

Zamani is now the CEO of the combined company, called Reply! Inc.,

USA, San Ramon, CA

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