NEW YORK: Communications giant Young and Rubicam has bought
investor relations consultancy Robinson Lerer and Montgomery for an
estimated pounds 20 million.
The deal is the latest in a line of IR transactions that has seen the
Lighthouse Global Network acquire Morgen-Walke Associates and BSMG buy
the Financial Relations Board.
Only two top IR firms - Abernathy MacGregor and Kekst and Company -
remain independent. Before the RLM acquisition, Y&R had also talked with
Sources close to the deal claim Y&R chose RLM because it had profit
margins of more than 20 per cent. While Y&R paid around pounds 20
million, reports say there could be further payments if performance
targets are met over the next few years. RLM staff have been told to
expect a bonus following the deal, expected to close within the next
Y&R CEO Tom Bell said: ’We do not think of them as an IR firm. We think
of them as a strategy firm.’
Linda Godsen Robinson becomes vice-chairman of Y&R and will retain her
duties as chairman and CEO of RLM. The firm retains its name despite the
departure of partner Ken Lerer, who has left to become a
senior-vice-president at AOL.