aQuantive’s Avenue A | Razorfish has made its first push into Europe with the acquisition of London-based interactive agency DNA for more than $4.8 million.
Under the all-cash deal, DNA will keep its brand identity and existing leadership team, operating as a subsidiary of Avenue A | Razorfish. aQuantive will pay $4.8 million up front, with future cash payments to be based on DNA’s profits over the next three years.
“DNA’s strong management, high-quality clients, great work, and historic profitability made them a great fit with what we’re doing,” Clark Kokich, worldwide president of Avenue A | Razorfish, told ClickZ News. “Plus, they’re a great cultural fit, with their focus on innovative, collaborative, client-focused work.”
DNA offers interactive marketing services similar to those of Avenue A | Razorfish, including media planning and buying, creative design and development, analytics, customer relationship management, user experience, and e-commerce. Clients include BMW, Standard Life Bank, Oxfam, and O2.
DNA will continue to be led by its joint managing directors, Chris Perry and Neil Miller, and retain all of its 60 employees. The profitable, privately held company expects net revenue of $8.0 to $9.0 million for its 2005 fiscal year, ending March 31, 2006.
aQuantive chose to begin its international expansion in the U.K. primarily because that’s the same route many U.S. businesses take when they begin to do so, Kokich said.
“The U.K. has a dynamic Internet market, the second largest in the world. Its proximity, language, and culture make it a strategic fit for many U.S. companies,” he said. “We have a lot of U.S.-based clients who have recently been expanding internationally with their marketing efforts, and this will enable us to better support those clients.”
aQuantive has a U.K. presence with its Atlas technology business, as well as its MediaBrokers performance media company.
Kokich said Avenue A | Razorfish would continue to look for acquisition opportunities in Europe and Asia over the next two years. “We’re aggressively pursuing expansion, but we’re going to be deliberate and smart about it,” he said. Talks with DNA lasted more than a year before the decision was made, he said.
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