Advertising giant The Interpublic Group of Companies Inc. Wednesday made a $20 million equity investment in
interactive agency Icon Medialab International AB of Sweden.
Interpublic said the move would “advance both companies as global leaders in
the delivery of Internet strategies, interactive communications and technology services.”
The agreement is subject to approval by Icon Medialab’s shareholders. With
more than 400 employees in eight European countries, Asia and Silicon Valley,
Icon Medialab is one of Europe’s independent Internet consulting and marketing
communications firms. Interpublic is one of the world’s largest organizations
of advertising and marketing communications companies.
In addition to Interpublic’s equity investment, which will support Icon
Medialab’s rapid expansion, the alignment includes cooperation agreements that
will benefit clients of both companies, as well as options for additional
investment by Interpublic. With an initial
equity position of just under 20 percent, Interpublic will become Icon’s
largest shareholder and also will receive representation on Icon Medialab’s
board of directors.
“Interpublic’s strategic alignment with Icon Medialab opens a new chapter
in delivering Internet and e-business solutions to marketers throughout the
world,” said Philip H. Geier Jr., Interpublic’s chairman and chief executive officer.
“In
the digital economy, building brands requires going beyond traditional media
in order to migrate businesses and their customers to the Web. Icon Medialab
has done this successfully for an impressive list of global companies.”
“It’s a win-win for both companies and their clients,” said Franco Fedeli, Icon Medialab’s chief executive officer.
Interpublic will designate Icon Medialab as a “preferred provider” of
interactive services to Interpublic’s major agencies and companies.
As a first step, the two companies will join forces in Norway, one of the
world’s
most wired nations. The well-regarded Thunder House, the interactive division
of Interpublic’s JBR-McCann agency in Oslo, will merge with Icon Medialab
Norway, creating an 80-person Internet firm.
The Interpublic Group of Companies, with more than $30 billion in advertising
billings, is comprised of McCann-Erickson WorldGroup, Ammirati Puris Lintas,
The Lowe Group, DraftWorldwide, Western Initiative Media Worldwide, Octagon,
International Public Relations, The Allied Communications Group and other
related companies.
