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SEO Big Mouth Media

Bigmouthmedia merges with LBi

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By The Drum Team, Editorial

February 25, 2010 | 3 min read

Search engine specialist Bigmouthmedia has agreed a deal to merge with LBi International through Obtineo to create the largest marketing and technology agency in Europe.

Obtineo is a combination of Bigmouthmedia and 40m Euros of new capital which will expand the combined entity.

The board of LBi International and Obtineo unanimously agreed the deal to merge this morning which will combine LBi’s digital media, marketing, communications, design, brand and technology services with Obtineo’s SEO marketing to meet customer demands within on agency.

It is expected that the deal will be completed in July and will trade under the name of LBi.

The combined company will offer 1,800 people across 15 countries which aim to capitalise on the shift in spend from offline to online channels.

The Drum understands that Steve Leach, founder of Bigmouthmedia who stepped down as CEO of the company last November has not withdrawn any of his equity and will continue to have a strategic role on the new board while redundancies are not planned for either agency.

The headqaurters of the combined entity will be in Amsterdam which will be responsible for central administration and financial functions although Bigmouthmedia has always said that it wanted its headquarters to remain in Edinburgh as 'a centre of excellence' in search marketing, although the LBi headquarters will remain in London.

It is also believe that there are currently no plans to close any offices, although 'integration planning' will occur over the next three months which could mean that status will change.

A further investment of 50 million Euros will also be made support expansion in the US, Asia and MENA.

Shareholders in LBi will receive 51% in the merged company, while former shareholders in Bigmouthmedia will receive 25% and investors in the 40million Euros private placement will receive 24% of shares in the merges company.

Luke Taylor, CEO of LBi said: “This is a transformational deal in a growing market. Combining these businesses will enable us to offer our clients digital marketing, consulting and technology services wherever they operate, all under one roof. This combination also solidifies our position as the European leader and enables us to strengthen our reach in the US, Asia and MENA. We are now well placed to take advantage of the irreversible spending shift to online channels.”

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