Rosetta Acquires Digital Agency Level Studios

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New Jersey-based Rosetta has announced it will acquire digital-focused agency Level Studios, and claims the deal will make it the fifth largest digital outfit in North America with over 1,000 staff and 10 offices across U.S. and Canada. Terms of the deal were not disclosed.

Level offers a range of digital services, including media strategy and buying, creative, and support for emerging devices and technology. Its clients have included Apple, Toyota, Hewlett-Packard, and Quiksilver.

Commenting on the acquisition, Rosetta CEO Chris Kuenne suggested Level's strength in emerging technologies was a key motivation for the purchase. "Rosetta is known for segmentation and e-commerce technology, and now we're going to take that...into connected devices. Level’s position on the leading edge of content, platforms and devices and Rosetta’s depth and scale in strategy, creative and technology and its expertise in personality segmentation are a powerful combination."

Following the merger, Level's 215 staff and three California offices will operate as "Level, a Rosetta Company," and will leverage each other's capabilities and staff to service both their existing and prospective clients. Rosetta said the two companies expected to generate around $215 million in revenue in 2010, and intend to compete with agencies such as Digitas, Razorfish, Sapient, RG/A, and AKQA.

Level’s President and CEO Tom Adamski said the companies would focus on their expertise on the healthcare, retail, financial services, B2B, consumer electronics, automotive, gaming and entertainment markets.

Last week, reports suggested rival agency AKQA might also be the subject of an acquisition, with interest from Japanese agency group Dentsu. AKQA declined to comment.