Marketing and communications network Multi-Media Holdings Inc. has acquired two agencies here to jump-start a Georgia presence: full-service shop Pollak, Levitt & Partners and b-to-b technology specialist Folio Z.
MHI of Washington, D.C., has also acquired a Boston marketing firm, Quantic Communications.
Sources close to the deals said a combination of cash and stock--MHI is poised to go public--made up the terms.
MHI seeks to expand its string of integrated marketing communications agencies from its business model of a dozen specialty firms in the capital, said company chairman Ethan Assal.
"By integrating best-of-breed agencies across a variety of disciplines, we are able to deliver clients all the marketing services they require in a coordinated, cost-effective communications environment," Assal said.
PL&P has struggled in 2000, losing its largest client, Powertel, to Martin Williams, and partner and executive creative director Andre Nel to DWP/Bates Technology.
Folio Z has built a niche in Atlanta's tech market, but has been overshadowed in the region by DWP. It has a reputation among agency observers as president Chris Coleman's one-woman show.
Some observers believe that buying the two mid-size independents with differing fortunes--PL&P, with $25 million in billings, is off more than 50 percent from last year, while Folio Z reports growth to about $35 million--may be a canny investment.
"[The two shops] will maintain their own identities and continue to work separately but also synergistically when the opportunities arise," said Paul Duning, MHI's vice president of new business development.
MHI's plans to continue expanding its network for integrated marketing strategies "from print to .com," its trademarked slogan.