SYDNEY: The Photon Group has entered into an agreement to acquire online marketing group iMega for $7.5 million, which will become the group's fifth acquisition this year.
The majority of iMega's clients are US-based and iMega has teams in New York and Chicago, presenting a possible US launch-pad for Photon.
iMega, a performance-based marketing group, is made up of six core businesses, which Photon will now own.
The Photon acquisition includes online marketing businesses imarketing, Coolworkz and MarketingWhip.com, as well as media intelligence agencies Ad Rankings and USAOnline.
Tim Hughes, Photon executive chairman, said strategically, the deal is very important for Photon.
“It places us at the forefront of the evolving marketing landscape as more and more people are using the internet for entertainment, awareness, search and purchase decisions,” Hughes said.
“This new media is accountable and direct and operators like iMega earn commission for driving traffic which links consumers with product suppliers.”
Siimon Reynolds, Photon executive director and chairman & creative director of Love, will take over as chairman of iMega following the acquisition.
iMega CEO Ari Klinger said the group had considered a public float, but opted for the “enormous opportunities” Photon offered.
He said iMega would look at online acquisitions and Photon’s experience in this area would further the group growth plans, including growth in the US market.
“Unlike other media, the value for clients [online] is immediately measurable,” Klinger said.
“They know instantly if their campaign is working. Sophisticated tracking technology delivers hard facts and figures in real time and if the campaign needs tweaking it takes minutes or hours - not days or weeks, nor is it cost-prohibitive.”
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