RealTime IT News

Icon Medialab Expands to England, Norway

Net company Icon Medialab International AB, a quoted Swedish group, extended its presence internationally this week by acquiring Britain's Module Communications Group Ltd. and Neo Interaktiv AS in Norway.

Icon Medialabhas made a name for itself as a fast growing European provider of interactive digital communication. Its strategy is to reach critical mass in each strategic market.

Net sales for the last six months was up 191 percent to MSEK 63.1 ($ 7.8 million), with 35 percent of sales occurring outside Sweden, in one of its nine offices worldwide.

With the acquisitions, Icon Medialab will have 300 employees and an expected turnover of SEK 200 million ($25 million) for the fiscal year 1998/99.

Icon Medialab already has a subsidiary in England but feels that a buy-out leverages its position in the UK market. After this acquisition Icon said its UK office will be one of the top three players in its field with about 50 employees.

Module Communications Group is a full service agency that offers strategic consultancy, design development, implementation and maintenance across the broad digital communications spectrum. Customers include British Airways, British Telecom, Guinness, Microsoft and Shell.

"We have been looking for a partner with the right mix of cultural, technical and creative skills and Icon looked like a perfect fit," said Chris Dickens, director of Module. "Strategically, Module needs to integrate with a pan-regional player to deepen resources and skills base." He said he believes that by belonging to an international company like Icon, it enables Module to service its clients beyond its borders.

Icon confirmed that it also signed a letter of intent to acquire Neo Interaktiv AS in Norway, making it the first interactive media company represented in all four of the larger Nordic countries. Neo Interaktiv AS is 83 percent owned by Scandinavia Online and has 25 employees.

Neo in Norway contributes to the qualities that Icon Medialab values highly--strong technological competence, creative design, skilled project managers and a deep media understanding, said Franco Fedeli, CEO at Icon Medialab International.

The acquisitions are expected to be complete before the end of January 1999. Module is a cash transaction and Neo will be financed through a non-cash transaction.