Interpublic Makes Significant Investment In Icon Medialab
March 24, 1999 at 12:00 AM EST
US $20 Million Interpublic Investment in Europe's Top Internet Consultancy
Accelerates Expansion of Global Interactive and e-Business Market
New York and Stockholm, March 24, 1999 (NYSE:IPG) -- The Boards of The Interpublic Group of Companies, Inc. (NYSE:IPG) and Icon Medialab International AB (Stockholm Stock Exchange O-List: Icon) today announced a broad agreement that advances both companies as global leaders in the delivery of Internet strategies, interactive communications and technology services.
The agreement, which is subject to approval by Icon Medialab's shareholders, includes a US $20 million capital investment by Interpublic in Icon Medialab. With more than 400 employees in eight European countries, Asia and Silicon Valley, Icon Medialab is Europe's largest, best-regarded and fastest-growing independent Internet consultancy. Interpublic is one of the world's largest organizations of advertising and marketing communications companies.
Interpublic's financial commitment to Icon Medialab represents one of the largest single investments ever in the strategic interactive services industry. In addition to Interpublic's equity investment, which will support Icon Medialab's rapid expansion, the alignment includes cooperation agreements that will benefit clients of both companies, as well as options for additional investment by Interpublic in Icon Medialab. With an initial equity position of just under 20 percent, Interpublic will become Icon's largest shareholder and also will receive representation on Icon Medialab's board of directors.
"Interpublic's strategic alignment with Icon Medialab opens a new chapter in delivering Internet and e-business solutions to marketers throughout the world," explained Philip H. Geier, Jr., chairman and chief executive officer of Interpublic. "In the digital economy, building brands requires going beyond traditional media in order to migrate businesses and their customers to the Web. Icon Medialab has done this successfully for an impressive list of global companies. Our partnership with Icon Medialab will benefit Interpublic's agencies and their clients by powerfully combining strategic, communications and technology leadership."
Franco Fedeli, Icon Medialab's CEO, echoed the importance of the alignment with Interpublic. "Interpublic's international credibility, companies and resources give Icon Medialab unlimited capabilities to leverage its leadership in Europe into the US marketplace and to service global brands even more effectively. It's a win-win for both companies and their clients."
Björn Nordstrand, chairman of the board of Icon Medialab, adds, "For Icon Medialab, this strategic alignment provides the best of both worlds: the continuing autonomy necessary to grow our leading-edge Internet expertise, and a global partner that can help enhance our visibility as the most international player in the interactive services field."
Under the strategic partnership, Interpublic will designate Icon Medialab as a "preferred provider" of interactive services to Interpublic's major agencies and companies. This cooperation will extend and deepen the interactive capabilities that Interpublic's agencies and companies can offer to their clients, while providing Icon Medialab access to Interpublic's extensive global infrastructure.
As a first step in bringing the benefits of the alignment to specific markets, the two companies will join forces in Norway, one of the world's most wired nations. The well-regarded Thunder House, the interactive division of Interpublic's JBR-McCann agency in Oslo, will merge with Icon Medialab Norway, creating an 80-person Internet consultancy. The combined company will become the largest Internet services firm in Norway and one of the largest in Scandinavia.
Icon Medialab is headquartered in Stockholm and operates in 10 markets with more than 400 employees. The company was founded in 1996 and successfully went public on the Stockholm Stock Exchange in 1998. Icon Medialab's reported net sales in 1998 of SEK 131 million (about US$16 million), more than 200 percent growth over 1997. Icon Medialab's fourth-quarter 1998 net sales of SEK 55 million (about US$6.7 million) reflected a revenue run-rate that points to more impressive growth for the company in 1999. Blending the best practices of strategic consultancy and "end-to-end" Internet solutions delivery, Icon Medialab supports clients through six core disciplines. These include business strategy; brand development and research; technology development and deployment; customer relationship management; creative design and integrated communications; and information and media development. Icon Medialab has offices in UK, Germany, Belgium, Denmark, Spain, Finland, Norway, Sweden, US and Malaysia. More information about Icon Medialab is available at the company's Web site at www.iconmedialab.com
The alignment with Icon Medialab accelerates Interpublic's sizeable and growing commitment to the interactive and technology arenas. In 1998 alone, Interpublic companies generated more than $75 million in interactive services and related revenues, while acquiring or investing in ten Internet and technology-focused organizations. In 1995, Interpublic became the first advertising-industry organization to invest in the interactive services industry. Today all of Interpublic's agencies and companies have developed interactive capabilities as part of their strategic arsenals, while Interpublic also manages a growing portfolio of strategic venture investments in technology-oriented companies.
The Interpublic Group of Companies is one of the largest organizations of advertising, marketing communications, and interactive services companies in the world. Interpublic companies operate in 127 countries with more than 35,000 employees, generating nearly US$4 billion in gross income and US$310mm in net income in 1998, with over US$30 billion in advertising billings. Interpublic is comprised of McCann-Erickson WorldGroup, Ammirati Puris Lintas, The Lowe Group, DraftWorldwide, Western Initiative Media Worldwide, Octagon, International Public Relations, The Allied Communications Group and other related companies. The shares of The Interpublic Group of Companies, Inc. are listed on the New York Stock Exchange (symbol: IPG); more information about Interpublic is available on the Company's Web site at www.interpublic.com.
Interpublic's investment in Icon Medialab is subject to approval at Icon Medialab's General Shareholders Meeting on April 27, 1999. More details will be included in Icon Medialab's meeting notification, to be released March 30, 1999.
New York and Stockholm, March 24, 1999 (NYSE:IPG) -- The Boards of The Interpublic Group of Companies, Inc. (NYSE:IPG) and Icon Medialab International AB (Stockholm Stock Exchange O-List: Icon) today announced a broad agreement that advances both companies as global leaders in the delivery of Internet strategies, interactive communications and technology services.
The agreement, which is subject to approval by Icon Medialab's shareholders, includes a US $20 million capital investment by Interpublic in Icon Medialab. With more than 400 employees in eight European countries, Asia and Silicon Valley, Icon Medialab is Europe's largest, best-regarded and fastest-growing independent Internet consultancy. Interpublic is one of the world's largest organizations of advertising and marketing communications companies.
Interpublic's financial commitment to Icon Medialab represents one of the largest single investments ever in the strategic interactive services industry. In addition to Interpublic's equity investment, which will support Icon Medialab's rapid expansion, the alignment includes cooperation agreements that will benefit clients of both companies, as well as options for additional investment by Interpublic in Icon Medialab. With an initial equity position of just under 20 percent, Interpublic will become Icon's largest shareholder and also will receive representation on Icon Medialab's board of directors.
"Interpublic's strategic alignment with Icon Medialab opens a new chapter in delivering Internet and e-business solutions to marketers throughout the world," explained Philip H. Geier, Jr., chairman and chief executive officer of Interpublic. "In the digital economy, building brands requires going beyond traditional media in order to migrate businesses and their customers to the Web. Icon Medialab has done this successfully for an impressive list of global companies. Our partnership with Icon Medialab will benefit Interpublic's agencies and their clients by powerfully combining strategic, communications and technology leadership."
Franco Fedeli, Icon Medialab's CEO, echoed the importance of the alignment with Interpublic. "Interpublic's international credibility, companies and resources give Icon Medialab unlimited capabilities to leverage its leadership in Europe into the US marketplace and to service global brands even more effectively. It's a win-win for both companies and their clients."
Björn Nordstrand, chairman of the board of Icon Medialab, adds, "For Icon Medialab, this strategic alignment provides the best of both worlds: the continuing autonomy necessary to grow our leading-edge Internet expertise, and a global partner that can help enhance our visibility as the most international player in the interactive services field."
Under the strategic partnership, Interpublic will designate Icon Medialab as a "preferred provider" of interactive services to Interpublic's major agencies and companies. This cooperation will extend and deepen the interactive capabilities that Interpublic's agencies and companies can offer to their clients, while providing Icon Medialab access to Interpublic's extensive global infrastructure.
As a first step in bringing the benefits of the alignment to specific markets, the two companies will join forces in Norway, one of the world's most wired nations. The well-regarded Thunder House, the interactive division of Interpublic's JBR-McCann agency in Oslo, will merge with Icon Medialab Norway, creating an 80-person Internet consultancy. The combined company will become the largest Internet services firm in Norway and one of the largest in Scandinavia.
Icon Medialab is headquartered in Stockholm and operates in 10 markets with more than 400 employees. The company was founded in 1996 and successfully went public on the Stockholm Stock Exchange in 1998. Icon Medialab's reported net sales in 1998 of SEK 131 million (about US$16 million), more than 200 percent growth over 1997. Icon Medialab's fourth-quarter 1998 net sales of SEK 55 million (about US$6.7 million) reflected a revenue run-rate that points to more impressive growth for the company in 1999. Blending the best practices of strategic consultancy and "end-to-end" Internet solutions delivery, Icon Medialab supports clients through six core disciplines. These include business strategy; brand development and research; technology development and deployment; customer relationship management; creative design and integrated communications; and information and media development. Icon Medialab has offices in UK, Germany, Belgium, Denmark, Spain, Finland, Norway, Sweden, US and Malaysia. More information about Icon Medialab is available at the company's Web site at www.iconmedialab.com
The alignment with Icon Medialab accelerates Interpublic's sizeable and growing commitment to the interactive and technology arenas. In 1998 alone, Interpublic companies generated more than $75 million in interactive services and related revenues, while acquiring or investing in ten Internet and technology-focused organizations. In 1995, Interpublic became the first advertising-industry organization to invest in the interactive services industry. Today all of Interpublic's agencies and companies have developed interactive capabilities as part of their strategic arsenals, while Interpublic also manages a growing portfolio of strategic venture investments in technology-oriented companies.
The Interpublic Group of Companies is one of the largest organizations of advertising, marketing communications, and interactive services companies in the world. Interpublic companies operate in 127 countries with more than 35,000 employees, generating nearly US$4 billion in gross income and US$310mm in net income in 1998, with over US$30 billion in advertising billings. Interpublic is comprised of McCann-Erickson WorldGroup, Ammirati Puris Lintas, The Lowe Group, DraftWorldwide, Western Initiative Media Worldwide, Octagon, International Public Relations, The Allied Communications Group and other related companies. The shares of The Interpublic Group of Companies, Inc. are listed on the New York Stock Exchange (symbol: IPG); more information about Interpublic is available on the Company's Web site at www.interpublic.com.
Interpublic's investment in Icon Medialab is subject to approval at Icon Medialab's General Shareholders Meeting on April 27, 1999. More details will be included in Icon Medialab's meeting notification, to be released March 30, 1999.
| CONTACTS: | Interpublic - New York Eugene P. Beard Vice-Chairman and CFO (212) 399-8053 Barry Linsky Senior Vice-President, Planning and Business Development (212) 399-8068 Glenn Mandel Technology Solutions/PR (212) 320-2240 Icon Medialab - Stockholm Franco Fedeli Chief Executive Officer +46 70 437 90 90 Björn Nordstrand Chairman of the Board +46 70 594 49 19 Jesper Jos Olsson Co-founder +46 70 437 90 02 |