SYDNEY: Independent digital agency Amnesia has sold to American giant Avenue A | Razorfish for $5 million in cash, plus earnouts.
The buy is Avenue A | Razorfish's first in the Asia Pacific region.
“We’re still interested in China and we’re looking at that market and will continue to look there but you have to be opportunistic,” said Clark Kokich, worldwide president of Avenue A | Razorfish.
“And to find a company with high quality management, and great clients, and a fit that went so well with our own people … China may be a bigger market but this made too much sense not to happen.”
The deal follows a year in which Amnesia and Avenue A | Razorfish have partnered on various Australian projects. Following several months of discussion, the final arrangement has Amnesia receiving $5 million in cash now, with the total price fixed by a profit-based earnout deal over the next three years.
According to Amnesia, the agency’s forecast net revenue for 2006 is between US$2 million and US$2.5 million.
The Amnesia name and brand identity will remain in Australia, with the 25-staffed firm operating as a subsidiary of Avenue A | Razorfish, part of the Nasdaq-listed aQuantive Inc.
All staff, including senior management, will remain.
Nine years old, Amnesia was founded by Terry Carney and Iain McDonald. Offering services in digital advertising, creative design and web development, its client list includes Disney, Xbox and Ikea.
It is also an expert in mobile marketing, an area Razorfish worldwide president Clark Kokich flagged as a key attractor.
“One of the great parts of this for us is that the mobile market here is more advanced than in the US,” Kokich said.
“So we were extremely impressed with the strategy and technology being implemented by Amnesia in the mobile market, and we felt we had a lot to learn to put back into the US.”
Kokich added that, in his view, Australia is also a global leader in online marketing.
“In Australia, in terms of the online media market, Australia is one of the seven top markets in the world [in online advertising spend] and we had US clients asking us why we didn’t have an option in Australia.
“This is a significant market for us.”
Avenue A Razorfish has 11 offices in the US, and one, DNA, in London. It claims to be the largest interactive marketing and technology services firm in the US.
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