Media and communications group, Aegis has announced plans to purchase an initial 52% equity stake in Russian media company, Komandarm, trading under the name Vizeum Russia, with the agreement allowing Aegis to acquire the outstanding equity by 2009.
The purchase price for 100% of the equity will be comprised of an initial consideration and a deferred consideration of up to a maximum of approximately €16 million, payable over five years and subject to earn out criteria.
Commenting on the deal, Robert Lerwill, chief executive officer of Aegis said: “Komandarm has acted as an affiliate agency for some time now and bringing its ownership into the Group will now enable full participation in the Vizeum network.”
He continued: “We look forward to working with the management team which has vast experience in helping clients to establish their brands in the fast-growing Russian market.”
The acquisition of Komandarm brings with it a number of local and international clients, including Alfa Bank, Bridgetown Foods, Eldorado, Heineken and JTI.
Yesterday Aegis announced that it had bought Irish advertising firm, Brindley Media Group, for a maximum total consideration of €12 million (see Aegis Buys Irish Advertising Group).
In its trading statement published last month, Aegis, reported a 14% increase in revenue for the six months to June 30th, reaching £389.0 million, up from £338.9 million this time a year ago (see Aegis Reports 14% Increase In Revenues For First Half Of 2005).
Half-year profit for the group rose to £35.6 million from £35.4 million a year earlier, helped by strong growth in its market research business, Synovate which increased revenues by nearly 18%. Aegis’s digital network, Isobar, also enjoyed a healthy first half to the year, seeing revenues rise by 20%.
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