Search engine marketing firm Bigmouthmedia is to merge with marketing agency LBi International, to create the largest marketing and technology agency in Europe. The deal was made through Bigmouthmedia’s holding company Obtineo, a combination of Bigmouthmedia and EU40m of new capital which will expand the combined entity. The merger will combine LBi’s digital media, marketing, […]
Search engine marketing firm Bigmouthmedia is to merge with marketing agency LBi International, to create the largest marketing and technology agency in Europe. The deal was made through Bigmouthmedia’s holding company Obtineo, a combination of Bigmouthmedia and EU40m of new capital which will expand the combined entity.
The merger will combine LBi’s digital media, marketing, communications, design, brand and technology services with Obtineo’s SEO marketing to meet customer demands within on agency.
01/03/2010
The board of LBi International and Obtineo unanimously agreed the deal to merge yesterday morning. It is expected that the deal will be completed in July and will trade under the name of LBi.
The combined company will offer 1,800 people across 15 countries which aim to capitalise on the shift in spend from offline to online channels.
The headqaurters of the combined entity will be in Amsterdam which will be responsible for central administration and financial functions. A further investment of 50 million Euros will also be made support expansion in the US, Asia and MENA.
Bigmouthmedia has always said that it wanted its headquarters to remain in Edinburgh as ‘a centre of excellence’ in search marketing, although the LBi headquarters will remain in London.
The companies said there are currently no plans to close any offices, although ‘integration planning’ will occur over the next three months which could mean that status will change.
Luke Taylor, CEO of LBi said: “This is a transformational deal in a growing market. Combining these businesses will enable us to offer our clients digital marketing, consulting and technology services wherever they operate, all under one roof. This combination also solidifies our position as the European leader and enables us to strengthen our reach in the US, Asia and MENA. We are now well placed to take advantage of the irreversible spending shift to online channels.”
Shareholders in LBi will receive 51% in the merged company, while former shareholders in Bigmouthmedia will receive 25% and investors in the 40million Euros private placement will receive 24% of shares in the merges company.
www.lbi.co.uk
www.bigmouthmedia.com
