Sweden's Icon Medialab buys hot U.S. Internet agency Nicholson NY

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Icon Medialab, one of Europe's leading Internet consultancies, has acquired the highly creative New York-based digital consultancy Nicholson NY as part of its plans to build one of the first global networks in the industry.

Nicholson NY was rated the third most creative interactive agency, as measured by the number of major awards won, according to an exclusive ranking compiled for the July issue of Advertising Age International.

Icon Medialab acquired Nicholson NY for 817,500 shares at an undisclosed price. An additional 80,000 shares will be paid if Nicholson NY hits certain sales and profitability targets.

Founded in 1987, Nicholson NY employs 100. The company says it operates profitably and projects 1999 net revenue of $10.5 million. Icon Medialab has projected 1999 net revenue of $50 million.

Following the acquisition, Icon Medialab will have 18 offices in 11 European countries, Asia and San Francisco.

"To Icon Medialab, the acquisition of Nicholson NY is extremely important strategically. It advances our plan to have the first global network, making us the leading creator of business value in the worldwide digital economy," says Ulf Dahlsten, president-CEO of Icon Medialab International.

To be initially known as Icon Nicholson, the New York office of Icon Medialab will remain under the co-management of Nicholson NY President-CEO Tom Nicholson and Managing Director Chad Gallant.

The Interpublic Group of Cos., holding company for McCann-Erickson Worldwide and Lowe Lintas & Partners Worldwide, already owns a minority stake in Nicholson NY. Earlier this year, Interpublic bought a 20% stake in Icon Medialab.

Copyright November 1999, Crain Communications Inc.

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