NEW YORK: Peppercom acquired interactive and creative shop H20 Associates for an undisclosed amount.
Peppercom co-founder and MD Edward Moed described the purchase as a strategic move to bolster the agency's offerings and offer a more integrated communications plan to clients.
“A lot of what we are doing will lend naturally to the type of work they do,” said Moed. “We feel really good about this marriage. We are seeing more digital demands combined with great creative service.”
The deal closed roughly two weeks ago following a courtship that lasted awhile, said Moed. H2O Associates will remain a separate brand from Peppercom.
H2O, an agency with eight employees, has annual revenues in the low seven-figures, said Moed. He said no layoffs will occur as a result of the acquisition.
H2O Founder Jason Dodd started the firm 20 years ago. He has been named senior creative director for Peppercom and a member of the agency's management committee.
“This allows H20 clients an expanded scope of services,” said Dodd. Those services include messaging, traditional PR, and strategic communications.
H20 Associates clients include WebMd, JPMorgan, American Express, and Conde Nast.
In the deal, Dodd doesn't immediately receive equity in Peppercom, but that remains an opportunity for Dodd in the future.