Aegis Sees Canadian Dollar Signs in Agency Acquisitions

Following its acquisition of Canada’s Genesis Media last month, Aegis Group has announced it will purchase Toronto-based full-service digital agency Mindblossom.

The six year old Canadian company will become part of Aegis Media Canada and the Isobar Global Network. Mindblossom offers creative, media planning, search marketing and Web site development, and serves clients including satellite radio provider Sirius and home goods provider Home Depot.

“Canada was a late starter in the digital market, and most of the excitement was coming from the U.S.,” said Aegis’ Canadian CEO Jacques Dorion. “However, we’re starting to see a lot more interest now in the Canadian digital space and a lot more investment in online. Mindblossom will enable us to offer Canadian clients a complete online solution.”

After acquiring both Mindblossom and media agency Genesis within a matter of weeks, Aegis’ Canadian expansion has been a rapid one. However, considering the growth of the market there, this is comes as no surprise.

The Interactive Advertising Bureau of Canada reported online ad revenues of $1.01 billion dollars for 2006, representing an 80 percent increase over the previous year’s $562 million. On top of this, it estimates a total Canadian Web ad spend of about $1.3 billion for 2007.

“We hadn’t intended to acquire both companies so close together,” stated Dorion. “Talks were being held for around a year prior to both deals, but coincidentally they’ve both came about together. The acquisitions come at a good time though, as the Canadian market looks set for a period of rapid growth.”

He went on to reveal that Isobar is actively seeking automotive and telecom clients from within Canada, since both sectors are currently unrepresented in their roster.

Although hinting that there may well be further acquisitions down the road, Dorion implied these were unlikely to take place in the next year. “We want to take our time with Mindblossom and Genesis first and foremost, and make sure they are carefully digested into the Aegis family” he stated. “We’re confident that both of these companies will thrive under the Aegis model, and all in all it looks very promising.”

Both Mindblossom and Genesis Media will remain unchanged for the time-being, and will not be seeing any immediate changes in location or staffing.

Related reading