RealTime IT News

Campbell Mithun Esty Acquires Digital Cafe

Advertising agency Campbell Mithun Esty in Minneapolis, a majority-owned unit of Interpublic Group of Cos., said it agreed to acquire digital media shop Digital Cafe for an undisclosed sum.

The deal more than doubles digital capabilities at the marketing communications company, according to Reuters.

"This acquisition gives us the creative talent and state-of-the-art technology to move to the next level in digital communications," said Howard Liszt, CME chief executive officer.

Digital Cafe creates a number of digital media communications, including Web sites, screen savers, computer games and CD-ROMs. CME plans to merge the 12-person shop, located in St. Paul, with the agency's existing 10-person staff, forming a wholly-owned interactive subsidiary under the Digital Cafe banner, Bob Safford, senior vice president/director of integrated marketing services, was quoted as saying.

"We are trying to take total communications solutions to our clients--from advertising to promotions to direct marketing," he said.

CME entered the digital communications arena in the early 1990s, creating Web sites for such clients as ConAgra Healthy Choice, General Mills and Land 'O Lakes, and CD-ROMs for window and door maker Andersen Corp.

Digital Cafe, founded in 1991 by Dean Hyers and Mike Koenigs, has created screen savers for such movies as "Die Hard III," "Jumanji," and next month's release of "Godzilla"; a number of computer games including Chex Quest and Virtual Cop I and II; and Web sites for 3M and General Mills. CME last year reported billings of $864 million.