LONDON (Brand Republic) - UK advertising group Cordiant Communications Group is to buy US company, Lighthouse Global Network, for £315m ($421m). The deal creates the world's 10th largest communications group.
Cordiant announced a definitive agreement to buy Lighthouse in a share deal based on yesterday's share price. Lighthouse, a network of communications and marketing businesses with 36 offices in six countries, is valued at $592m.
Cordiant expects the acquisition to increase contribution from high-growth marketing services to 47% of combined revenues, and lift its North American market position to 35% of combined revenues.
Michael Bungey, chief executive of Cordiant, explained, The Lighthouse businesses uniquely fit our core strategic objectives: increasing North American revenues, building our marketing services and higher margin income. The acquisition brings us two new high-growth business streams in design and branding, and business communications, and adds critical mass to our existing marketing services operation."