Mosaic Group Makes Digital Investment
April 18, 2000
TORONTO, ONTARIO--Mosaic Group Inc. (TSE: MGX) today announced a
strategic investment in Medium One Productions Inc., a
Toronto-based interactive agency. The transaction, which is
expected to close later this month, will give Mosaic Group a 52%
equity interest in Medium One. Mosaic Group is Canada's leading
outsourced marketing services agency, and will use the Medium One
partnership to expand its e-marketing offering to clients.
Medium One is a 3 year-old interactive agency with 45 employees in
offices in Toronto and Montreal. The partnership and investment
will allow Medium One to continue to be a leader in the growing
interactive forum by leveraging Mosaic's knowledge and skill-sets.
Medium One builds strategic interactive products and marketing
materials for clients such as Royal Bank of Canada, Classwave
Wireless, Cincinnati Bell, Kanetix.com (Canada Life) and Chapters.
The company has multilingual capabilities, having produced
interactive solutions in English, French and Cantonese. Medium
One's revenues for 2000 are expected to exceed $4 million.
"The Internet is becoming an increasingly critical channel to
market for companies seeking to expand visibility and sales," said
Michael Skea, President of Mosaic Digital, Mosaic Group's
e-commerce division. "We are experiencing a general shift of
business from traditional sales channels to e-commerce, inspiring
companies to seek out innovative ways to market themselves on the
Web. Our partnership with Medium One will help us to expand our
own interactive resources and knowledge base and allow us to grow
our e-marketing offering much more quickly. Our integrated
marketing solutions increasingly include interactive technologies
like Internet, Intranet, wireless applications, CD-ROM, and
interactive TV - services that Medium One provides.
"Think it. Build it. Work it. Medium One's tagline defines the
philosophy of building long-term and effective relationships with
clients," said John Yorke, President and CEO of Medium One. "This
philosophy is synergistic with Mosaic's and will allow clients of
both organizations to receive the best possible expertise in
developing, implementing and managing their interactive mandates."
"Mosaic is committed to bringing the highest quality e-enabled
expertise and technologies to the table for our clients," said
Michael Cottman, Vice-Chairman, President and Chief Operating
Officer of Mosaic Group. "We continue to build our digital
businesses and expect 2000 revenues from eForce, Medium One,
Mosaic Direct and Interactive and McGill Multimedia in the range
of $40 million, with Intelecom (20%-owned by Mosaic) generating an
additional $20 million in revenue. Consistent with Mosaic's
operating philosophy, all of our digital businesses are
profitable."
Mosaic Group Inc., with operations in the United States, Europe
and Canada, provides outsourced marketing services on an
integrated basis to leading corporations serving international
markets. Mosaic combines strategic thinking with leading-edge
technologies to effectively deliver immediate and measurable
results for its clients. Marketing solutions include electronic
marketing, e-commerce, new media services, contract sales,
merchandising, field marketing, direct marketing, database
development and management, product promotion, corporate
communications and sales force training. Mosaic, which has
approximately 71 million shares outstanding, trades on the TSE
under the symbol MGX. |
