In a deal worth around £100m, the two companies will come together “to offer clients digital marketing, consulting and technology services wherever they operate, all under one roof.”
In a statement to the City, the newly combined entity, which will trade under the name of LBi, the 51% majority owner, said it aims to meet “growing customer demand for one agency to provide services across geographies”.
LBi chairman Fred Mulder will become chairman of the Supervisory Board of the merged entity, LBi chief executive Luke Taylor will be CEO and chief finance officer Huub Wezenberg will be CFO of the agency.
The new head office will be based in Amsterdam, The Netherlands, but will employ more than 1,800 people across 15 countries.
The bulk of the funding (€40m) will be provided through a private placement to Carlyle, Cyrte and Janivo. €10m will come from a fully underwritten rights issue expected in July 2010.
LBi CEO Luke Taylor said in statement:
“This is a transformational deal in a growing market. It solidifies our position as the European leader and enables us to strengthen our reach in the US, Asia and MENA. We are now well placed to take advantage of the irreversible spending shift to online channels.”
The completion of the merger is expected to take place in June.