London-headquartered advertising group Cordiant Communications is today expected to unveil the acquisition of German network InterCom Management.
Cordiant is purchasing 80% of Intercom, a marketing and sales consultancy with headquarters in Mainz and offices across Europe. The price is believed to be £6m in Cordiant shares plus additional payments that could see the total reach £23 million depending on Intercom’s performance up to December 2004.
Intercom’s clients include Skoda, Seat, Unilever and German TV company ZDF.
Cordiant chief executive Michael Bungey stated that the move would strengthen Cordiant in Germany, Europe’s largest market, adding: “It's also part of the strategy we have been pursuing for the last three years, which is to change Cordiant's business mix by shifting it towards higher margin, higher growth marketing services businesses”.
News source: Financial Times