Aegis to pay up to £228m to bulk up Isobar North America

By Daniel Farey-Jones, campaignlive.co.uk, Wednesday, 22 February 2012 02:42PM

Aegis has agreed to pay £79m upfront and a performance-related total sum of up to £228m to acquire 250-strong US digital agency Roundarch, which it will add to its Isobar network.

Jerry Buhlmann: chief executive of Aegis Group

Jerry Buhlmann: chief executive of Aegis Group

Having agreed to a five year earn-out, Aegis expects to pay around $250m (£159m) over the period to 2017 but said if the agency "significantly outperforms" expectations it could pay up to a maximum cap of $360m (£228m). All payments will be in cash.

Roundarch specialises in designing and building digital solutions for clients such as Avis, HBO, Bloomberg Sports, Motorola and the US Air Force. It has offices in Chicago, Denver, Boston and New York and employs 250 staff.

The deal follows Aegis' capture of the General Motors business in the US as part of the $3bn global account win in January. It is subject to approval by US regulators.

Aegis plans to combine Roundarch with Isobar North America to form IsobarRoundarch.

Roundarch presidents Jeff Maling and Geoff Cubitt will lead the new agency along with Isobar North America president Darryl Gehly.

Jerry Buhlmann, chief executive of Aegis Group, said: "Combining Roundarch with Isobar places Aegis at the forefront of digital communications in the US, the world's largest advertising market.

"Following its integration, we expect the proportion of Aegis Media's total global revenues from digital to increase to 40%."

Follow Daniel Farey-Jones on Twitter @danfareyjones

This article was first published on campaignlive.co.uk

X

You must log in to use Clip & Save

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Campaign Jobs

  • Campaign Marketing Manager EMAP Competitive + Bonus, London (Greater) / London (East), London (Greater)
  • Exhibition Designers WRG Live Competitive salary and benefits package dependant upon experience, Manchester, Greater Manchester
  • Producer WRG Live Competitve salary and benefits package dependent upon experience, London (Central), London (Greater) / Manchester, Greater Manchester
  • Content Manager WRG Live Competitive salary and benefits package, Manchester, Greater Manchester
  • Marketing and Communications Manager University of Bath Starting from £37,756, rising to £45,053, Bath, Somerset