SUSSEX, Wis. & MINNEAPOLIS (News release) -- Quad/Graphics, Inc. announced that it is redefining the future of integrated marketing with its planned acquisition of Periscope, one of the nation's top five independent creative agencies by annual revenue. The business combination will create a highly efficient global platform for creating marketing campaigns and programs - from strategy and creative through execution - across all media channels.
The transaction has been approved by both companies' boards of directors and is expected to close in early 2019. Under terms of the agreement, Quad/Graphics will purchase Periscope for $132.5 million.
"We are redefining the future of integrated marketing at a time of substantial disruption when clients are looking for less complexity, greater transparency and accountability from their business partners," said Joel Quadracci, Chairman, President & CEO of Quad/Graphics. "With Periscope, we will create a truly integrated, end-to-end marketing platform that we believe will create more value than the traditional siloed agency approach that exists today. Periscope will turbo-charge our existing offering with its world-class capabilities in strategy, including media buying and analytics, creative and account management. Additionally, Periscope's first-rate packaging design and premedia services will complement our robust print-production capabilities."
Quad's acquisition of Periscope supports and accelerates the company's ongoing Quad 3.0 transformation as an integrated marketing solutions provider that reduces complexity, and improves process efficiencies and marketing spend effectiveness. "We have been taking a disciplined approach to implementing our transformation strategy over the past few years," Quadracci said. "Periscope is an important next step in our journey, significantly adding to the capabilities from our recent investments in Rise Interactive and Ivie & Associates."
Established in 1994 by Bill Simpson, Periscope was built on the success of the Simpson family typesetting and production company, which was originally established in 1960. Simpson transformed the family-owned business into today's multifaceted creative company by assembling some of the best talent in the industry and letting them shine in a culture that encourages fun, hard work and intrapreneurship.
Bill Simpson, Chairman and Owner of Periscope, noted that Quad is the ideal choice for Periscope's future. "Our companies share a common vision for the future of integrated marketing and operate with very similar values," he said. "Quad's 3.0 strategy mirrors Periscope's vision for an end-to-end solution, but on a much larger scale. The result of this business combination will be tremendous growth opportunities for our people, Periscope and Quad, and provide significant additional value for our clients. I'm excited to see what can be accomplished together."
Elizabeth Ross, President & CEO of Periscope, said: "Quad allows us to accelerate the creation of the agency of the future by removing silos to help our clients seamlessly move from idea to execution. Brand owners have been very receptive to this approach because it provides fully integrated marketing solutions at the scale and speed they require. We already proudly serve some of the most iconic brands in the nation, and we look forward to partnering with the substantial number of brands in Quad's portfolio."
Ross, an experienced advertising executive who has worked for some of the world's most innovative and fastest-growing agencies, will join Quad along with her team of highly experienced visionary leaders once the acquisition closes early next year. "Liz is a creative and business powerhouse, and we are excited to have her and her team join Quad as we redefine the future of integrated marketing," said Eric Ashworth, Executive Vice President of Product Solutions & Market Strategy for Quad/Graphics. "Periscope has exceptional talent - great people with a client-centric approach, focused on innovation. Together, our companies encompass the very best creators and makers and will create more value for all our stakeholders."
Periscope is headquartered in Minneapolis and also has offices in Chicago, Hong Kong and Delhi. The agency employs more than 500 people and offers a comprehensive portfolio of integrated solutions that solve business problems. Among Periscope's recent recognitions are the Jay Chiatt Award for its strategic work on BASF and creative accolades including honors from London International Awards, Graphis Design Awards, Digiday Awards and Addy Awards.