RealTime IT News

Young & Rubicam to Take 13 Percent Stake in Clarant

A new Internet advertising and electronic commerce company called Clarant Worldwide Corp. is planning an IPO and New York City-based Young & Rubicam Inc. said it will hold a 13 percent stake.

Clarant, which will elect former CBS Corp. top executive Michael Jordan as chairman when its IPO closes, filed for a $175 million stock offering. Gil G. Marmol, a former vice president of Perot Systems Inc. and senior partner of McKinsey & Co. Inc., is to be president and CEO of Clarant.

Y&R said it would contribute the New York office of its Brand Dialogue interactive agency to the group of interactive media companies that will form Clarant. In exchange, Young & Rubicam said it will hold a 13 percent stake in Clarant.

Clarant said it expects to acquire seven other companies as its nucleus, including: Align Solutions Corp., a technology company; Free Range Media Inc., a developer of online business solutions; Integrated Consulting Inc. (known as i.con interactive), an interactive marketing and online solutions provider; InterActive8 Inc., an interactive and strategy consulting agency; Multimedia Resources LLC, an interactive consulting and marketing agency; Potomac Partners Management Consulting LLC , an interactive strategy firm; and RSI Group Inc., an IT consulting firm. Financial and equity arrangements were not disclosed for those deals.

Clarant, apparently to be based in Dallas, said it will offer clients assistance in developing and expanding Internet and economic business models through its integrated strategic, creative and technology practice areas.