This is the next step for Next Fifteen's strategy to build a global consumer agency, having recently completed the last stage in the acquisition of Lexis, which began in 2005.
Next Fifteen paid an initial US$4 million in cash for the New York agency. A further $13.25 million may be paid out over the next four years if revenue and profit performance targets are met. Up to 25 per cent of this later payment may be in group shares.
Next Fifteen has said it will see some futher restructuring in the early part of the 2009/10 year following the loss of Sun Microsystems as a client after it was recently acquired by Oracle.
M Booth & Associates has 65 staff and focuses on consumer, online brands, travel/lifestyle, corporate, consumer health, and fashion/retail. Clients include Unilever, J C Penney and Remy Cointreau USA. Last year, the agency had revenues of $10.4 million, and profit before tax of $1 million. Its gross assets were $4.3 million.
M Booth founders Margi Booth and Brad Rodney will both remain in their current respective roles and sit on the M Booth board reporting to Next Fifteen CEO Tim Dyson.
‘Recessions are times when you find out which agencies have a future,' said Dyson. ‘In M Booth we see an agency that has tremendous ambition and sees this economy as a chance to prove to clients the difference great PR can make to the brand and their bottom line. We saw the same in Lexis in London and as these businesses start to work together to build a global business I believe they'll make a significant impact on the way PR is done globally', he said.