Global marketing communications group, Cordiant, has bought 92.6% of International Business Information (IBI), a leading business communications consultancy in Japan, for Y1.3 billion (£7.5 million).
IBI is based in Tokyo and has more than 100 employees. Its business deals with domestic and international clients in the areas of investor relations, public relations and corporate communications strategies. IBI will become part of Cordiant’s Business Communications International division (BCI) and will form a ‘key link’ in a global network which includes Financial Dynamics, Morgen-Walke, Gallagher & Kelly, and Bulletin International.
Cordiant says that the acquisition of IBI gives BCI a significant presence in each of the key international financial centres of New York, London and Tokyo, and expands BCI’s operations to 12 offices. The company believes that the acquisition fits its ‘strategic priorities of building business in value-added marketing sectors and consolidating its leadership position in business communications.’
The total consideration for the 92.6% stake in IBI is Y4.9 billion (£28.0 million), payable in new Cordiant shares depending on IBI’s financial performance to December 2005.
Nick Miles, chief executive of BCI, commented: “Japanese stocks held by foreigners have dramatically risen to about 20% of market capitalisation, spurring interest in investor relations, corporate governance and reputation management among Japanese companies. Foreign direct investment in Japan surged by 30% last fiscal year and Japan is the largest overseas creditor. Multi-national clients will be very excited at the global access, world-class professional resources and perspective IBI provides, in this vitally important global market.”
At 10:30am today stock in Cordiant Communications was down ½p at 178p.
