Fusion Corporate Partners

WPP is acquiring US-based Marketing Direct, (“MDI”) through KBM Group, part of the Wunderman network.

MDI is an integrated marketing services company with expertise in strategy, design and execution of marketing campaigns, including agency creative and media services, primarily for the healthcare industry. In addition, it focuses on direct and interactive marketing services to healthcare and insurance providers.

Founded in 1997 in St Louis, Missouri, MDI has been ranked one of America’s fastest growing private companies by Inc. Magazine for the past three years. The company employs 64 people. MDI’s key clients and partners are major national and regional companies in the healthcare and insurance industries.

MDI’s audited revenue for the year ended 31 December 2009 was $16.9 million, with gross assets at the same date of $7.3 million.

This investment continues WPP’s strategy of investing in fast growing markets and sectors and strengthening its capabilities in the healthcare sector. The transaction is subject to regulatory approval and the approval of Marketing Direct Inc.’s shareholders.

USA, St Louis, MO

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Apax Partners are to acquire a majority interest in Advantage Sales & Marketing LLC (ASM) from J.W. Childs Associates, L.P. and BAML Capital Partners (Merrill Lynch Global Private Equity).  Terms of the transaction were not disclosed.

ASM, which provides outsourced sales, marketing and merchandising services to manufacturers, suppliers and producers of consumer packaged goods, has 2010 revenues of approximately $1 billion.  Upon completion of the transaction, ASM’s senior leadership team will continue to manage the Company’s day-to-day operations.

“ASM has established an impressive track record of generating value for its clients and customers through its operational excellence in both Sales and Marketing,” said John Megrue, Chief Executive Officer of Apax Partners U.S., and co-head of the Apax Retail & Consumer team.  “We look forward to partnering with the Company’s outstanding management team led by Sonny King and Tanya Domier.”

Alex Pellegrini, Partner in the Retail & Consumer Group at Apax Partners, commented: “We believe that ASM operates in a favorable industry that features strong secular growth trends, including more outsourcing by CPGs and a greater focus on in-store marketing.  Advantage is well positioned to further build brand value for its clients and customers through its industry-leading sales and marketing capabilities.”

“I am very excited to embark on our new partnership with Apax Partners. Their global reach and large network of relationships will not only drive value for ASM but also create opportunities for further growth,” said Chairman and Chief Executive Officer Sonny King. “Apax is an ideal partner for our company given their deep expertise in Retail & Consumer Products.”

“This transaction marks a new chapter in the growth of our business,” said Tanya Domier, President and Chief Operating Officer. “We look forward to pursuing our growth strategy with the support of Apax.”

The transaction, which is subject to customary approvals, is expected to close prior to the end of 2010.

Sawaya Segalas & Co., LLC acted as exclusive financial adviser to the Company in connection with the transaction.

USA, New York, NY & Irvine, CA

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WPP announces has agreed to acquire I-Behavior Inc through KBM Group, part of WPP’s Wunderman network.

I-Behavior is a privately-held database marketing business which provides direct marketing services to multi-channel merchants – retailers, financial services firms, catalogue sellers, consumer magazines, business-to-business companies – based on consumer purchase transaction data.

Based in Louisville, Colorado, I-Behavior’s projected full-year revenues for this year are expected to be approximately $25 million. It employs 83 people.

I-Behavior helps merchants market more effectively through its innovative co-operative database which includes over 8 billion purchase transactions. The database covers purchases by 171 million consumers from 110 million households. It also has information generated by 103 million online buyers and 35 million business-to-business purchasers. Collectively, this represents more than $320 billion in online and offline purchases. The database has more than 1,900 merchants who contribute data about customer transactions in exchange for highly qualified and modeled predictions about future buying behaviors.

This acquisition continues WPP’s strategy of investing in digital knowledge-based marketing solutions companies in fast growing markets and sectors. The transaction is subject to regulatory approval and the approval of I-Behavior’s shareholders.

USA, Louisville, CO & Richardson, TX

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Undertone has acquired Jambo Media, one of the largest suppliers of online video advertising distribution and technology with more than 17 million unique viewers* per month. Financial terms of the deal were not disclosed.

Online video represents an exciting growth opportunity, with Piper Jaffray projecting 39 percent annual growth over the next five years to become a $5+ billion market. With this acquisition, Undertone adds Jambo’s video player and content management technology to its portfolio and gains the ability to create premium video inventory for a market in which current and future demand far outpaces available supply.

“While brand advertisers use video in traditional settings like television, it is under-utilized online,” said Mike Cassidy, CEO of Undertone. “Undertone’s goal is to help marketers ‘span the screens,’ putting video to work for brands on televisions, personal computers and mobile devices. Pairing video and display under a single management platform helps advertisers serve the right content in the right format to the right person, delivering results that impact the brand.”

Fortune 500 brands, including both advertisers and publishers, create a tremendous amount of content. Now, they will have a new distribution channel for in-stream video married with high-value, branded content. Undertone executes integrated campaigns across brand-safe sites from a single platform that includes key analytics to give marketers the ability to manage, measure and improve upon their campaigns.

“Our clients want to take advantage of online video, but not at the expense of brand safety,” said Erin Matts, Chief Digital Officer, OMD. “With this acquisition, Undertone can deliver the reach our brands need without sacrificing quality.”

USA, New York, NY