Core Media is paying €3m for Mediaworks
COMMUNICATIONS group Core Media is to acquire a Dublin ad agency after agreeing a deal to buy the company.
Core, which counts Aer Lingus, INM and An Post among its clients, will pay €3m for media-buying firm Mediaworks, giving the combined firm billings of more than €160m per year.
Under the deal, the Mediaworks name and management will be retained but will become part of the Core Media Group umbrella.
Core, which is believed to be the country's biggest media-buying agency with 116 staff, was formed in 2009 by the consolidation of agencies MediaVest, ZenithOptimedia, Equinox, Clear Blue Water, Radical and Starcom.
The move was being seen last night as a sign of the start of a consolidation cycle in an industry that has been hit by falling business levels since the boom.
The hope is the acquisition can be the beginning of a wider rebound in the advertising industry as a whole.
Core Media boss Alan Cox said the deal brought two companies with a "similar culture and approach" together.
"This deal is the latest in a series of investments that we are making in our business to grow our market share and expand our service offering. In addition to our acquisition plan, we are continuing to invest heavily in developing our digital and research divisions which will account for more than 30pc of our revenues this year."
Mediaworks managing director Paul Moran described the deal as "great news for our staff and clients".
Set up in 1996, Mediaworks clients include KBC Bank and McDonald's. Last year its holding company, Addax Advertising, increased profits after tax by more than a third to €395,680 on turnover of €21m.