Avenue A/Razorfish Buys French Online Ad Firm Duke For $7.9 Million Plus Earnout

Proving earlier predictions about a hot takeover market for online ad shops, this one involves two: Avenue A/Razorfish, a unit of online ad agency aQuantive, bought Paris-based interactive agency Duke. The Seattle-based digital shop paid an initial $7.9 million to acquire Duke. The complete purchase price will be paid in cash. The final price will be determined by an earnout arrangement based on Duke’s profit contributions over the next three years and Duke’s net asset value on Monday. Duke, which will keep its brand identity and management team, will become a subsidiary of Avenue A/Razorfish. The Paris company expects net revenue of about $12 million to $14 million for the rest of this calendar year, Avenue A/Razorfish said in a statement. Duke’s clients include Nissan, McDonald’s, Nike and Procter and Gamble. The company has 130 workers. Avenue A/Razorfish works with Northwest Airlines and Sun Microsystems. Last week, Mediapost reported that Avenue A/Razorfish’s media billings surged 34 percent last year to $418 million. Overall, the agency purchased media on 728 Web sites – up from 654 in 2004. Release
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