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Europe's Icon Medialab Acquires Nicholson NY

Icon Medialab International AB, a European Internet marketing and e-commerce consulting firm, acquired e-business and promotion firm Nicholson NY in a deal valued at about $68 million.

The acquisition will be financed through an issue by Icon Medialab (ICON on the Stockholm Exchange) of 817,500 shares (before the split scheduled Nov. 29).

An additional payment of up to 80,000 shares (before the split) may occur if Nicholson NY meets certain sales and profitability targets in fiscal year 2000.

Nicholson NY will become the New York base for Icon Medialab's integrated multi-national organization, which after the acquisition includes 18 offices in 11 European countries, Asia and San Francisco.

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

Nicholson will join the board of directors of Icon Medialab and serve as chief creative officer for the entire Icon Medialab group of companies.

Nicholson NY has nearly 100 employees and projects net revenue in 1999 of $10.5 million. Privately held, the company said it is in the black.

"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," said Ulf Dahlsten, president and CEO, Icon Medialab International.

"By combining our resources with Icon Medialab, we have created a truly international, integrated e-business consultancy," said Nicholson.

"Icon Medialab's global resources and capabilities will allow our clients to quickly capitalize on business opportunities and increase market share and recognition beyond the U.S."

Current Nicholson clients include gifts.com, an online gift-buying center from Reader's Digest ; the Commercial, Government and Industrial Solutions Sector division of Motorola; and New York's Metropolitan Museum of Art.

Icon Medialab, with 850 employees, has clients that include Coca Cola, Nestle, Fujitsu, Opel, Sony, Volkswagen, Siemens, Tetra Pak, Telia and Scandinavian Airlines.