A new trend? VC firm buys two PR shops

NEW YORK: In what may well mark the start of a trend, VC firm Yazam has acquired two Philadelphia-based PR agencies, Gregory Communications and Financial Communications Associates (FCA).

NEW YORK: In what may well mark the start of a trend, VC firm Yazam has acquired two Philadelphia-based PR agencies, Gregory Communications and Financial Communications Associates (FCA).

NEW YORK: In what may well mark the start of a trend, VC firm Yazam

has acquired two Philadelphia-based PR agencies, Gregory Communications

and Financial Communications Associates (FCA).



Gregory and FCA had been partners since the mid-1990s and had been

exploring ways to formally merge. The cash-and-stock deal calls for

tech-focused Gregory and IR specialist FCA to merge operations, which

shouldn’t be all that difficult given that they already share office

space.



The newly combined company, to be known as Gregory FCA, will have 26

employees and projected revenues of dollars 3 million in 2000. The deal

allows the agencies to provide PR and IR for Yazam’s portfolio clients,

such as CoreMarkets and Primeshot.com. Right now, Yazam’s clients

account for about 20% of Gregory FCA’s stable, which also includes Kodak

Photonet Online and StarCD.



Gregory founder Gregory Matusky, who becomes president of the new

entity, said he is looking to open a New York office ’as soon as

possible’ and a West Coast outpost by the end of the year. FCA founder

David Evanson will serve as president of IR for the new firm.



While it is unclear if the Yazam deal is the first of its kind, it is

understood that similar deals as VCs recognize the benefits of having PR

expertise in-house. ’In the new economy, capital and exposure are

currency,’ Matusky said.



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