The new company will initially be named Icon Nicholson. The New York office of Icon Medialab will remain under the co-management of Nicholson NY president, CEO and founder Tom Nicholson, who will also join the board of directors of Icon Medialab and serve as Chief Creative Officer for the entire Icon Medialab group of companies.
The acquisition is financed through an issue by Icon Medialab of 817,500 pre-split shares. An additional payment of up to 80,000 pre-split shares may occur if Nicholson NY meets certain sales and profitability targets next year.
The merger comes at a time when e-business development and Internet usage are exploding across both Europe and Asia, and as American firms are increasingly seeking to extend their Internet strategies and deploy e-commerce sites globally.
Nicholson NY will become Icon Medialab’s New York base and will serve as a fundamental part of its integrated multinational organization, which after this acquisition includes 18 offices in 11 countries throughout Europe and Asia, as well as a separate lab in San Francisco. The company believes the buy will substantially accelerates its expansion efforts while strengthening the company’s ability to offer innovative e-business solutions on a global scale.
Nicholson NY projects a 1999 net revenue of US$10.5 million and, unlike many Internet companies, operates profitably. Icon Medialab’s projected 1999 revenue is SEK 400 million (US$50 million), more than triple its 1998 figure. The company estimates that it will again triple its net revenues next year.
“By teaming up with Nicholson NY, Icon Medialab has an outstanding platform for expanding its American presence,” said Ulf Dahlsten, president and CEO, Icon Medialab International.
Nicholson NY works with e-business development in the United States. The company has nearly 100 employees and was founded in 1987 as one of the first firms in New York’s famed Silicon Alley.