NEW YORK Avenue A/Razorfish said it has purchased a small Australian interactive agency.
The Seattle-based shop, part of aQuantive, acquired Amnesia, a Sydney-based company offering Internet design and advertising services. The 8-year-old agency's clients include Xbox, Ikea and Disney. It has about 25 employees.
AQuantive paid $3.7 million in cash for Amnesia, with the total purchase price contingent on Amnesia's profitability over the next three years. Amnesia expects revenue between $2 million and $2.5 million for the rest of 2006, the agency said.
The purchase expands Avenue A/Razorfish's international profile. Last December, it bought DNA, a London-based Web agency, marking its initial expansion abroad. Amnesia will give Avenue A/Razorfish a presence in Australia and Japan.
"One of the challenges we've had in the past was occasionally a client saying, 'We'd love to work with you but we'd like a global presence,'" said aQuantive CEO Brian McAndrews.
While global interactive pitches are not the norm, more are crossing markets, he added. AQuantive has not disclosed any U.S. clients it has expanded to use DNA in the UK, but McAndrews said Avenue A/Razorfish and DNA have already jointly pitched business.
Like DNA, Avenue A/Razorfish said Amnesia would operate as a subsidiary and retain its name. Amnesia's executive team, led by managing director Terry Carney, will remain in place.