The acquisition is designed to increase Hearst's ability to provide its marketing customers with search marketing, Web development and social marketing services. The companies said iCrossing will continue to build its own client base, which includes Bank of America and Toyota, as well as work with Hearst clients.
Don Scales, president-CEO of iCrossing, will continue in his current role, according to the companies.
Matthew Petersen, senior VP of Hearst Magazines, will head Hearst Marketing Services, which will include oversight of iCrossing. Petersen joined Hearst in March from Meredith Corp., where he was senior VP of Meredith Integrated Marketing.
”Search and online marketing expertise will be an important asset for us as we continue to look for new ways to reach key audiences through digital marketing for our brands and our clients,” said Frank A. Bennack Jr., vice chairman-CEO of Hearst Corp.
The Jordan, Edmiston Group served as financial adviser to Hearst in the deal. “If you look at how complex digital marketing and advertising have become, you need services like this to properly service a brand or marketing partner,” said Wilma Jordan, founder-CEO of Jordan, Edmiston. “That's why this deal is very important for the Hearst Corp. I think it's a unique approach they took. I don't think anyone else from a content-creator standpoint has acquired in the search arena to this extent.”