Group Press Releases
Aegis to Acquire Leading US-based Sponsorship Marketing Agency
22 November 2004
Aegis Group plc ("Aegis" or "Group") - the media communications and market research group – announced today that it has reached an agreement to acquire Velocity Sports & Entertainment LLC ("Velocity"), one of America’s largest independent sponsorship and event marketing agencies. In this transaction Aegis will acquire 100% of the shares which were held by a core group of five principals and founders. The acquisition is expected to complete before the end of December 2004.
The purchase price will be composed of initial consideration of approximately $9.0 million payable in cash on completion. There will also be deferred cash consideration payable over three years, up to a maximum of approximately $26.0 million, subject to rigorous performance criteria.
Originally established in 1999, Velocity has five US offices located in Wilton, Atlanta, Chicago, San Francisco and Washington DC, and a UK operation based in London. The agency specialises in helping clients, including many of America’s leading marketers, maximize the value of sports and entertainment sponsorship and lifestyle marketing efforts. In PROMO Magazine’s annual ranking of U.S. promotion agencies, Velocity ranks fifth overall and is the top-ranked sports and entertainment marketing agency. This ranking reflects the exceptional growth the agency has experienced in the past two years as well as Velocity’s creative and strategic ability to launch sponsorship and lifestyle marketing programs.
Doug Flynn, CEO of Aegis Group plc said:
"The acquisition of Velocity is consistent with our strategy of investing in the development of strong global networks. Sponsorship has become a key communication medium and a vital part of the communications planning mix. We were very impressed with the vision of Velocity and are keen to develop this part of the business into a true international capability."
For further information contact:
Richard Walters
Aegis Group plc
+44 (0) 20 7070 7700
Charles Palmer
Financial Dynamics
+44 (0) 20 7831 3113
