More on the iProspect transactionDecember 23, 2004 Underscoring the first and largest acquisition so far of a top search engine marketing company by a major foreign holding, Isobar will acquire iProspect for $50 million. This deal marks the seventh overall acquisition for the global agency network Aegis, which now owns major interactive shops in France, the U.K., Germany, and Spain. In total, Aegis, a London-based advertising conglomerate, has more than 350 clients through 36 offices in 24 markets worldwide, including major brands like Adidas and Pfizer.
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Other U.S. properties of Isobar--formed by Aegis in July--include Carat Interactive and Freestyle. iProspect, which employees 85 people, will continue to operate as a stand-alone entity, as do the rest of Isobar's digital brands. Aegis will pay an initial $32 million for iProspect with a further $18 million deferred and payable over two years, subject to performance. In total, the interactive ad shop network has billings of $500 million and projected revenue of $100 million. Isobar will be gaining 68 new clients through the iProspect acquisition, according to a company spokesperson. iProspect executives will now report to Nigel Morris, president of Isobar Worldwide. iProspect's bid management and analytics tool, iSEBA, will slowly be rolled out across Isobar's agency network, said Sarah Fay, president of both Isobar U.S. and Carat Interactive. Isobar's roll-out of iSEBA has "huge" implications for Isobar properties outside the United States, said Fay, because almost all overseas interactive agencies currently outsource pay-per-click bid management tools to American search firms and technology vendors. Fay said the iSEBA platform will allow Carat--Isobar's largest American property--to serve and manage paid inclusion and search engine optimization campaigns in-house. Carat's existing search marketing team, lead by Ron Bellenger, handled paid search and organic optimization, but had to outsource paid inclusion and license its optimization technology from another vendor. JupiterResearch analyst Niki Scevak said the iProspect acquisition is "certainly the most noteworthy transaction" of a search firm by a major player in interactive marketing to date. He said that other noteworthy search firm acquisitions have been primarily technology-based, particularly aQuantive's acquisition of GO TOAST, 24/7 Real Media's acquisition of Decide Interactive, and DoubleClick's acquisition of Performics earlier this year.
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"You'll see a lot of similar transactions next year," he predicted, adding, "direct marketing agencies will lead the consolidation." At least one search marketing firm plans to stave off all offers in the short term. Richard Hagerty, chief executive officer of Impaqt, said the firm has turned down several offers potential buyers and will continue to do so. "Being specific to search allows us to innovate faster, instead of having to go to an executive board for approval," he said. "Since the search engines change so quickly without telling anyone, we need to be able to turn on a dime," he added. Source: Media Post Read Serge Thibodeau's daily blogs on search engines at Serge Thibodeau Live. We strongly suggest you bookmark our web site by clicking here. Tired of receiving unwanted spam in your in box? Get SpamArrest™ and put a stop to all that SPAM. Click here and get rid of SPAM forever! Get your business or company listed in the Global Business Listing directory and increase your business. It takes less then 24 hours to get a premium listing in the most powerful business search engine there is. Click here to find out all about it. Rank for $ales strongly recommends the use of WordTracker to effectively identify all your right industry keywords. Accurate identification of the right keywords and key phrases used in your industry is the first basic step in any serious search engine optimization program. Click here to start your keyword and key phrase research. You can link to the Rank for Sales web site as much as you like. Read our section on how your company can participate in our reciprocal link exchange program and increase your rankings in all the major search engines such as Google, AltaVista, Yahoo and all the others. Powered by Sun Hosting Sponsored by Avantex Traffic stats by Site Clicks™Site design by Mtl. Web D. Sponsored by Press Broadcast Sponsored by Blog Hosting.ca Call Rank for Sales toll free from anywhere in the US or Canada: 1-800-631-3221
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