INTERNATIONAL: Young and Rubicam in IR move with RLM purchase

NEW YORK: Communications giant Young and Rubicam has bought investor relations consultancy Robinson Lerer and Montgomery for an estimated pounds 20 million.

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

Abernathy.



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

month.



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.



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