Mosaic Group Acquires IT Marketer M:\ DRIVE
TORONTO, ONTARIO-- April 19, 2000
- Completes Mosaic Technology and Communications Group -
TORONTO, ONTARIO--Mosaic Group Inc. (TSE: MGX), Canada's leading
outsourced marketing services agency, today announced that it has
agreed to acquire M:\ DRIVE, a UK-based agency that provides
integrated marketing services to the IT industry. M:\ DRIVE's
clients include Hewlett Packard, SGI, Toshiba, 3Com, and Creative
Labs.
Mosaic will pay initial cash and share consideration of $8.5
million. Additional contingent consideration will be payable based
on M:\ DRIVE's financial results in 2000 and 2001. M:\ DRIVE is
expected to generate $14 million in revenue in calendar 2000. The
acquisition will contribute to Mosaic's cash earnings per share
(per share earnings before net-of-tax goodwill charges) in 2000.
The acquisition of M:\ DRIVE adds the final element to the Mosaic
Technology and Communications Group (MTCG), which provides
specialized, integrated marketing services to the IT and
convergent technology industry in Europe. MTCG now has the ability
to service IT and convergent technology clients in their three
major channels to market: M:\ DRIVE will provide services to the
VAR, or business-to-business, channel, Mosaic's EMS Chiara
business will service the retail channel, and Mosaic's Home Coach
initiative will service the direct-to-consumer channel, including
on-line sellers. MTCG will have the most comprehensive
below-the-line offering in the European technology sector.
"M:\ DRIVE is poised to exploit some major opportunities in the
business-to-business channel," said Michael Cottman, President and
Chief Operating Officer of Mosaic Group. "M:\ DRIVE offers a fully
integrated array of marketing and sales services, including field
marketing and merchandising, training, data management, direct
marketing, sales promotion, and telemarketing. They are able to
provide a one-stop sales and marketing solution to clients seeking
integrated services for their B2B channel. It's a powerful model,
and one that we will look to export to other European markets
where Mosaic has EMS Chiara operations such as Holland, France,
and Spain, in the second half of 2000 and into 2001."
"We are very eager about the prospects for expansion as part of
Mosaic," said Mark Richens, Managing Director of M:\ DRIVE. "We
are particularly excited about some significant client synergy
opportunities, where M:\ DRIVE will be introduced to current EMS
Chiara and Home Coach clients in order to win new contracts in the
B2B channel."
"M:\ DRIVE is well positioned to take advantage of the migration
of B2B channel management to the web," said Cottman. "The
business-to-business portals currently being established by many
IT and convergent technology clients will need M:\ DRIVE's
expertise as they move to a virtual model for their B2B channel
management.
"We are very happy with the early results from other new
Internet-based initiatives. For example, Home Coach is providing
home computer installation, configuration, and training services
to Internet-based computer retailers, allowing virtual retailers
to add a human touch. It's a hot space with excellent growth
prospects, and is indicative of how Mosaic stands to profit from
the growth of e-commerce and related services."
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. |
