NEW YORK Search-focused digital agency 360i has joined in a management buyout of the shop from Japanese parent company Livedoor.
The buyout, backed by venture firm ABS Capital Partners, covers 360i and bid-management technology company SearchIgnite. Along with an ad network, the companies operate as Innovation Interactive.
Financial details of the transaction were not disclosed.
Livedoor purchased 360i and SearchIgnite in November 2005. The strategy was to leverage the companies to expand Livedoor’s services into the U.S. market. Soon after the deal closed, however, Livedoor was embroiled in an accounting scandal that eventually landed its founder and CEO, Takafumi Horie, behind bars.
Bryan Wiener, 360i’s CEO, said the buyout would have little effect on day-to-day operations at the 170-person company. The top 20 managers at 360i and SearchIgnite all participated in the buyback, he said.
“Our thinking is counter to some others,” he said. “We think, given the rapid pace of change, an independent company is in the best position to innovate on behalf of clients.”
Interpublic Group in April acquired 360i competitor Reprise Media. Other holding companies are pursuing search shops, according to sources, driven by about 40 percent of online ad spending going to search campaigns.
ABS will gain two of the five seats on Innovation’s board of directors.
360i Managers Buy Back Shop
