Aegis Nabs Top Position in Australian Market with Mitchell Buy

Aegis Group has agreed to buy Mitchell Communications Group for $325 million, giving the buyer the top position in the Australian advertising market.

The deal follows up on a statement made in March by Aegis chief executive Jerry Buhlmann that the group would return to “substantial acquisitions,” reports the Financial Times.

The Mitchell purchase will bump Aegis up in the rankings of media agencies, from fifth to third, in the Asia Pacific. It will more than double its revenues for advertising spending in the region.

More Purchases to Come

Aegis says the Mitchell purchase will not stop the group from continuing to make acquisitions. “We still have significant flexibility to continue our strategy based on bolt-ons and the occasional larger deals,” said Buhlmann.

Signs of Confidence Grow

Aegis’s return to acquisitions is another sign that advertising markets are seeing an improvement, writes The Wall Street Journal. And Aegis isn’t the only advertising agency group feeling positive. Aegis’s larger rivals, Omnicom and Publicis, have reported strong trading in the first half of 2010.

Buhlmann said the group expects to upgrade its worldwide ad spending forecasts in August.