Avenue A/Razorfish Pushes Into Germany

NEW YORK Avenue A/Razorfish said it would expand into Europe’s second-largest Internet market through the purchase of Neue Digitale, a Frankfurt, Germany-based Web shop.

The acquisition is the second in the past two weeks for Avenue A/Razorfish parent aQuantive, which bought Australian shop Amnesia on July 24. Neue Digitale joins DNA, bought in December 2005, as Avenue A/Razorfish agencies in Europe.

Under terms of the deal, aQuantive will pay $5.6 million, based on a three-year earnout provision. Like DNA and Amnesia, Neue Digitale will retain its name and management team, led by founders Andreas Gahlert and Olaf Czeschner.

Eight-year-old Neue Digitale is a full-service interactive agency, offering both creative and media services for clients that include Adidas, Coca-Cola and DaimlerChrysler. The firm is profitable and expects net revenue of $2.8 million to $3.3 million for the rest of 2006, aQuantive said. It has 44 employees.

The acquisition continues aQuantive’s aggressive international expansion strategy for Avenue A/Razorfish, the largest standalone digital agency in the U.S. market. In an earnings call this week, CEO Brian McAndrews said aQuantive would use its $307 million in cash to continue beefing up Avenue A/Razorfish’s international presence in both Europe and Asia. The company is targeting the largest Internet markets in those geographies.

Avenue A/Razorfish is not the only growing U.S. Web agency looking at international opportunities. Independent AKQA yesterday named its first chief financial officer in five years. CEO Tom Bedecarre said CFO Tim Pierce would help the company expand into new markets in Europe and to China. Omnicom Group’s Agency.com this week opened an office in Ireland, part of its international expansion plans under the holding group’s strategy of aligning it with TBWA.