The strategic rationale behind the merger is that the two agencies will strengthen each other in financial communications and public affairs, while complementing each firm's geographical expansion goals.
Both firms have pursued aggressive international growth in recent years and will now focus on regional expansion into major financial and political centres around the world and in developing markets, particularly in Asia, India and the Middle East.
Kreab Gavin Anderson will have over 350 professionals of 40 nationalities serving more than 500 clients in 25 countries.
Peje Emilsson, Chairman of Magnora and Kreab will become the executive chairman of Kreab Gavin Anderson while Richard Constant, chairman & CEO of Gavin Anderson will be the president & CEO. Charlotte Erkhammar, president & CEO of Kreab will be executive VP & deputy CEO.
Constant said: ‘This merger fulfils a mutual and long-held ambition to combine our strengths for the benefit of our clients. The balance and complementary fit between our financial communications, public affairs and corporate communications practices, together with the breadth of our international network means that our new firm has an even stronger talent base from which to deliver outstanding results for clients.'
Magnora AB and Omnicom Group are the parent companies and majority owners of Kreab and Gavin Anderson respectively and will together be the majority owners of the combined group.