NEW YORK: Edelman has acquired Silicon Valley-based technology firm A&R Partners, in a deal aimed at building and stabilizing Edelman's Bay Area presence and technology offering.
Edelman’s Mountain View office will merge with A&R at the latter’s San Mateo headquarters, and will be branded A&R Edelman.
“What we’ve really missed is a Silicon Valley presence,” said Edelman president Pam Talbot. “We have got to be good here.” A&R also has offices in San Diego, Los Angeles, New York, Washington DC, Denver, Portland, and Louisville. Decisions will be made about consolidation of these operations on a case-by-case basis.
The move is clear signal that Edelman wants to, as CEO Richard Edelman puts it, make technology the “third leg” of its capabilities, together with its strong healthcare and consumer practices. The firm has experienced significant senior turnover in the Bay Area, including its Silicon Valley GM, who departed last summer, and Warren Egnal, who left his job as EVP and GM of San Francisco in February.
Pam Pollace, formerly VP and director of corporate communications at Intel, became head of Edelman’s global technology practice in July, 2005, replacing Rich Moore who left the firm after seven months.
A&R Partners, which has had a thriving presence in the Bay Area throughout the technology downturn, had revenues of $14.1 million in 2005, has a staff of 115, with seven partners, including president and managing partner Bob Angus. Clients include Adobe, Palm, and Mozilla. Angus said they have been talking with Edelman for more than three years, and now believe that this move will, “enrich our depth of understanding of things on a global basis.”
Terms of the deal were not disclosed. Rick Gould, managing partner at Stevens Gould, a consulting firm that deals with agency acquisitions, says that a typical purchase would be around 1 times revenues, plus net worth, for firms that can maintain steady growth and profitability. Profitability of 35% or greater would tend to push that number higher.