Digital marketing services and technology company aQuantive Inc. has closed on the acquisition of SBI.Razorfish, an Internet marketing and consulting firm. Combined with interactive agency Avenue A, the resulting brand identity for aQuantiveÕs core agency business is now Avenue A/Razorfish, according to the company.
Seattle-based aQuantive purchased Razorfish for $160 million, comprised of $85 million in cash, and $75 million in convertible notes. The privately-held Razorfish had net revenues of $93 million in 2003, excluding billings to clients for reimbursable costs.
The acquisition of Razorfish will have no impact on aQuantiveÕs second quarter financial results scheduled to be announced Aug. 4. At that time, aQuantive will provide updated guidance for 2004, including the impact of this acquisition, which is expected to contribute approximately $42 million in revenue, according to the company.
Avenue A/Razorfish is structured into three regions: East, West and Central. Bob Lord, formerly RazorfishÕs executive vice president, is president of Avenue A/Razorfish East and will be responsible for the Atlanta, Boston, Fort Lauderdale, FL, and New York offices.
Clark Kokich, formerly president of Avenue A Seattle/Chicago, is president of Avenue A/Razorfish West and will oversee the Seattle, San Francisco, Los Angeles and Portland, OR, offices.
David Friedman, formerly RazorfishÕs executive vice president, is president of Avenue A/Razorfish Central and will oversee the Chicago and Austin, TX, offices.
Also, Ned Stringham, SBI GroupÕs CEO and president, has joined the aQuantive board of directors. He replaces Fredric Harman of Oak Investment Partners, a venture capital firm and an early investor in aQuantive.
