International sports marketing company Infront Sports and Media and digital consulting firm Omnigon announced a strategic partnership in October and just three months later that partnership took a giant leap as Infront purchased a 51% shareholding in Omnigon.
So what were the reasons for the switch from a strategic partnership to an acquisition in such a short space of time?
Omnigon CEO Igor Ulis says an acquisition was always in the offing and the deal made sense for both parties.
“We knew, advice when we announced the strategic partnership back in October, doctor that a transaction was possible, arthritis ” said Ulis.
“The partnership announcement in the fall made sense for us regardless of whether or not the larger deal would materialize.
“This more formal relationship makes sense for both organizations. For Infront, it helps accelerate their expansion of digital services, without having to develop these solutions internally. The acquisition helps Omnigon as we’ll be able to provide our clients with services we didn’t necessarily have before.
Alessandro Albanese, Associate Director at Infront Sports & Media, believes the deal can only produce positive outcomes for the two organisations as they will be able to collaborate on numerous areas.
“This step is one of broader initiative of Infront to grasp the rapidly growing opportunities in the digital global sports market,” Albanese said.
“We want to enable our clients to stay at the forefront with high-end digital solutions that we provide from one central source.
“There is a tremendous upside for both sides. Infront can strengthen its overall digital value proposition. Omnigon, on the other hand, gets access to an even broader network and skill portfolio within the Infront Group, supporting the company to reach the next level in terms of scope and impact.”
The deal is seen as a win-win for both parties, as they will be able to draw on the expertise of one another, tap into unchartered territory and offer their existing clients services on a broader scale.
Ulis sees this as a perfect opportunity for the company to work with sports properties in new markets and grow the Omnigon brand.
“Given Infront works with 170+ rights holders, sponsors and media companies, predominantly based in Europe and Asia, we anticipate we’ll start working with Sports properties in new markets, including Asia, in the near future.,” Ulis added.
“Infront has tremendous scale and market expertise across geographies we currently do not service; we will now have great exposure to premium sports brands across Europe and Asia.
“Additionally, Infront’s existing portfolio of services includes sponsorships, hospitality and content production, among others – practice areas we do not have expertise in. We’re excited to be able to add these practice areas to our business, enabling us to continue to super-serve our existing clients.”
Albanese was in agreement, commenting: “Omnigon’s geographic footprint complements Infront’s reach, as Omnigon gives access to the major leagues in the US and, in turn, allows Infront to provide Omnigon’s strong digital offering to a wide range of European and Asian clients.
“In any case, digital progress dominates all over the world. Also in China, digital media is quickly becoming the new dominant medium – and Infront is committed to leveraging this development and support its clients in defining and developing the most efficient solutions.”
One of the crucial terms of the deal was that Omnigon would continue to exist as its own entity and operate under the name it has held for 8 years. Ulis says it was very important for them to maintain the brand and reputation it has built in the digital industry.
“We’ve worked hard to establish a strong brand and will continue to rely on the reputation of the brand we’ve built over the last 8 years,” he said.
“Omnigon’s clients will not be impacted by this deal, except that Omnigon now has access to resources and services it did not before. Infront is not interested in changing anything about the way our clients perceive us, or the working relationship we have with them.”
Instead, Omnigon and Infront’s clients could well be the biggest benefactors of this deal as they will be able to expand on their partnerships with both parties and have access to services on a much wider scale.
“Omnigon will complement Infront’s capabilities, particularly in the areas of digital strategy consulting and technology. Omnigon will be the key technological solutions provider of the Group,” said Albanese.
“With joint forces, the Infront Digital Solutions team will provide partners keen to maximize sports impact across the digital landscape with custom-made, fully comprehensive digital solutions.”
Omnigon and Infront are now well placed to take their organisations to another level and dominate the digital and sports marketing industries.
