Omnicom to Take New Media Shops Public in February
NEW YORK--Two of Omnicom's Communicade agencies--Agency.com and Eagle River Interactive--are merging operations, creating the world's largest interactive ad agency. The move follows Agency.com's recent absorption of Interactive Solutions, another Communicade shop.
Omnicom, which acquired Eagle River last September, owns a minority stake in New York-based Agency.com, founded in January 1995.
The merged entity, which will retain the Agency.com name, will have more than 575 employees in 10 offices and projected 1998 revenues of $80 million.
"Eagle River as a company has geographic reach where we don't," said Chan Suh, chief executive officer of Agency.com.
Eagle River is contributing offices in Avon, Colo., Chicago, Portland, Ore, and Paris. Where both agencies have a presence (Dallas, New York and San Francisco), offices will be combined. Terms of the deal were not disclosed.
Suh will remain chief executive officer, while Eagle River president Kevin Rowe will become president of Agency.com North America.
Razorfish, another Communicade shop, is poised to acquire a Stockholm-based interactive shop, sources said.
Omnicom plans to take the Communicade shops public in February, sources said. Suh declined comment on the pending initial public offering and John Wren, Omnicom chief executive, could not be reached.
Separately, sources said Communicade managing director Felice Kincannon will soon take on a consultant role and Bruce Redditt, who recently joined Omnicom from Sony Pictures, will take over day-to-day operations. Kincannon denied her role was changing.