Maxxcomm to Buy Crispin, Porter & Bogusky

Maxxcom, a division of Canadian holding company MDC Communications, has agreed to purchase a 49 percent ownership of Crispin Porter & Bogusky.

Terms of the deal have not been finalized, but reports citing sources close to MDC peg the purchase price at $10-20 million in cash and stock, contingent upon the Miami shop’s meeting performance goals over the next few years.

CP&B garnered national attention for its breakthrough anti-smoking work for the American Legacy Foundation, an educational organization funded by the $200 billion settlement between the tobacco companies and state governments. However, the agency was never able to get beyond its image as a creative boutique. It also faced two recent setbacks: It unsuccessfully pitched the Land Rover and L.L. Bean accounts.

Maxxcom, with its broad array of account planning, media and other marketing resources, is expected to carry the agency to the next level. MDC, based in Toronto, adds CP&B to a roster of creative shops that includes Source Marketing in Westport, Conn.; Colle & McVoy in Minneapolis; and Margeotes/Fertitta & Partners in New York.

As part of the arrangement, Maxxcom has the option to buy out the agency in 2006.