Dachis Group Makes Its Biggest Acquisition To Date, Buys Marketing Agency Powered

http://techcrunch.com/2010/12/21/dachis-group-powered/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29
Social business services company Dachis Group has made its third acquisition in less than 2 months, and this deal marks the biggest purchase for the company to date. Dachis has picked up social marketing agency Powered along with its operating subsidiaries StepChange Group, Drillteam, and crayon.

The agreement, terms of which were not disclosed, makes Dachis Group the largest Facebook Preferred Developer on the planet, and also expands its presence to New York.
The agency primarily focuses on social marketing campaign, from lining out strategies to planning, program development, content marketing, blogger outreach to branded events.
Powered’s clients include companies like HP, Nike, Ernst and Young, Toys “R” Us, T-Mobile, Toyota, Gillette and Target.

The acquisition of Powered increases Dachis Group’s size to over 220 employees across ten cities, in five countries worldwide. The company recently bought youth marketing consultancy agency Archrival and social marketing applications developer Stuzo.
Dachis Group was founded in 2008, by CEO and chairman Jeffrey Dachis (cofounder and former CEO of Razorfish).

Its growth strategy, which consists of rolling up smaller companies in the social business services space as well as growing organically, is backed by a financial commitment of up to $50 million from Austin Ventures (Dachis Group is headquartered in Austin, Texas).

Online Ads Pull Ahead of Newspapers

http://online.wsj.com/article/SB10001424052748704443704576026073503437388.html?mod=dist_smartbrief
This year, for the first time, advertisers will have spent more on Internet ads than on print newspaper ads, according to new estimates from eMarketer.

The digital-marketing research firm says U.S. spending on online ads will hit $25.8 billion, surpassing the $22.8 billion spent on print ads in newspapers.

MDC Partners Inc. has agreed to acquire Los Angeles-based creative agency 72andSunny

http://online.wsj.com/article/SB10001424052748703507704576021394080686566.html?mod=dist_smartbrief

While relatively small, 72andSunny has managed to lure business from some big-name advertisers, including Hewlett-Packard Co. and Nike Inc. since being founded in 2004. The firm's work includes a corporate ad campaign for H-P that used the tag line "Let's Do Amazing," and a pitch for Nike's soccer business that features a two-minute film directed by Guy Ritchie called "The Next Level."

After six years of being independent, 72andSunny agreed to sell so it could expand overseas (it already has an office in Amsterdam) and beef up on digital capabilities. With MDC's help, "we will be able to grow faster and in a bigger way," says Matt Jarvis, chief strategy officer at 72andSunny.

Terms of the deal weren't disclosed but a person familiar with the matter says the pact includes some cash and an earnout with financial targets for 72andSunny, which could push the purchase price over $20 million. The agency currently has about $28 million in revenue, the person added.

AOL Buys Digital Ad Company

http://blogs.wsj.com/digits/2010/12/16/aol-buys-digital-ad-company/

AOL Inc. acquired digital advertising company Pictela Inc. on Thursday to bolster its efforts to attract more ad dollars from big brands by selling larger, glitzier ad formats.

Terms of the deal were not disclosed, but a person familiar with the matter said it was valued at between $20 million and $30 million. Pictela will operate as a business unit within AOL, and its 18 employees will stay on to work at the Internet company.

Founded in 2008, New York-based Pictela creates ads that include high-resolution video, photos, coupons and other interactive components that marketers can update in real time. The ads have appeared across a broad network of sites, including AOL, Yahoo Inc., Pandora, Hearst Corp. and Demand Media.

KBM Group acquires Marketing Direct

Direct marketing and data management company KBM Group, a Wunderman company, has acquired Marketing Direct, a provider of agency services to the healthcare industry. The acquisition will form the core of the KBM’s newly launched Health Services group.
Marketing Direct is based in St. Louis, Mo. Terms of the deal, which are subject to regulatory and shareholder approval, were not disclosed.
KBM Group formerly was known as KnowledgeBase Marketing before rebranding itself in October.
http://www.btobonline.com/article/20101209/FREE/101209904/kbm-group-acquires-marketing-direct#seenit

Rewards Network Inc. and EGI Affiliate Sign Definitive Merger Agreement

http://finance.yahoo.com/news/Rewards-Network-Inc-and-EGI-iw-2410351015.html?x=0&.v=1
Rewards Network Inc. announced today that Rewards Network and EGI Acquisition, L.L.C. ("EGI Acquisition"), an affiliate of Equity Group Investments, L.L.C. ("EGI"), a private investment firm, have entered into a definitive merger agreement under which EGI Acquisition will offer to acquire all of the shares of Rewards Network common stock not owned by EGI Acquisition for $13.75 per share in cash. EGI Acquisition currently owns approximately 14.2% of the outstanding shares of Rewards Network common stock. Certain other affiliates of EGI collectively own approximately 12.1% of the outstanding shares of Rewards Network common stock and have agreed to tender such shares in the offer. The transaction values Rewards Network on a fully diluted share basis at approximately $126 million.

Beringer note: On $12.35M trailing ebitda, multiple is 8.8 on equity value, 10x on enterprise value ($12M excess cash in business)

Olson Acquires PR Shop Dig Communications

http://adage.com/agencynews/article?article_id=147503 Olson is acquiring Chicago-based public relations shop Dig Communications in a move that gives Olson its first sizable footprint outside of its home market of Minneapolis.

With the addition of Dig, Olson will swell to more than 360 employees, and nearly 20% of the agency's overall revenue will now be driven by PR. Dig's founder, Peter Marino, becomes president of the newly merged agency's PR practice, which will be rebranded Olson PR. Dig employees will remain in their respective office locations in Chicago, Milwaukee, New York and San Francisco.

Olson's roster includes General Mills, Fifth Third Bank, Northwestern Mutual and Target, while Dig's client list includes MillerCoors, Mars' Wm. Wrigley Jr. Co., Harley Davidson, American Express and PepsiCo's Quaker.
http://www.oco.com/about/news/article/1676-OCO

Creston acquires Cooney/Waters

http://www.marketwire.com/press-release/Creston-plc-Poised-Acquire-US-Healthcare-Communications-Businesses-over-USD30-Million-1360852.htm

Based in Manhattan, New York, and with a staff of approximately 50 people, Cooney/Waters and Alembic Health Communications (together the "Cooney/Waters Businesses") are specialist communications agencies with an exclusive focus on healthcare and pharmaceutical PR and health advocacy.

The total cash consideration of up to £19.5 million ($30.8 million) is to consist of:
An initial consideration of £5.9 million ($9.4 million) payable on Closing; and
An additional earn-out consideration of up to a maximum £13.5 million ($21.4 million) payable in two instalments based on the averaged combined earnings before interest and tax of the Cooney/Waters Businesses for the periods from Closing to 31 March 2013 and 31 March 2015.

Johnson & Quin acquires direct marketer Compuletter

Direct mail printing and production company Johnson & Quin has acquired Compuletter Inc., which specializes in personalized direct marketing, fulfillment, database and list management services. Terms of the agreement were not disclosed.

The addition of Compuletter is expected to expand Johnson & Quin's services beyond direct mail, adding such solutions as personalized URLs, microsites, quick-response codes for mobile marketing and integration of social media networks, according to the company.

Last year, Johnson & Quin acquired some assets and customers of InteliMail, a division of Staples Print Solutions, to augment its direct-mail business.

http://www.btobonline.com/article/20101203/FREE/101209963/johnson-quin-acquires-direct-marketer-compuletter

Capital C & Kenna acquired by MDC

http://www.theglobeandmail.com/globe-investor/marketing-firms-target-us-under-mdc-ownership/article1819700/

Two Toronto-based marketing firms are eyeing a push into the U.S. after being acquired from a struggling income trust by the deep-pocketed communications holding company MDC Partners (MDZ.A-T14.760.261.79%).

MDC, which has been on a buying spree for most of the year, is announcing the acquisition Wednesday of a majority of both Capital C Communications Inc. and the direct-marketing company Kenna, from Newport Partners Holdings LP(NPF.UN-T0.25-0.01-3.85%) which is seeking to pay down debt.

Terms of this week’s acquisitions were not disclosed, but Capital C claimed about $20-million (Canadian) in revenue last year, while Kenna executives said its revenue was “north of that.”

http://www.marketingmag.ca/english/news/agency/article.jsp?content=20101201_100726_2928

After examining various venture capital and personal investment options, Chapman and his fellow partners chose MDC for its model of allowing partner companies to run their own businesses without top-down interference. The deal actually sees Capital C's partners increase their own personal stakes in the company.

"MDC really lets entrepreneurs be entrepreneurs with full autonomy," Chapman said. "We can decide whether we want to crawl, walk or run."

Capital C has it roots in retail and experiential marketing, but has expanded to become more full-service with the addition of research and content creation divisions. With revenues last year reportedly around $20 million, clients include PepsiCo Food & Beverages Canada, Sun Life Assurance Company of Canada, Scotiabank, Nissan Canada, Andrew Peller Limited, Cineplex Entertainment, Unilever Canada, McCain Foods Limited and Maple Leaf Foods.