Bloomberg Línea — With clients such as AB InBev, DHL, Siemens, Fortinet and the University of Arizona, among others in the United States, Spain-based global communications, digital marketing, and public affairs consulting firm LLYC is buying an 80% stake in the public relations and marketing agency BAM Communications.
LLYC said it is paying $13.2 million in cash, after an initial valuation). However, the price may be adjusted based on performance from 2022 to 2025.
With its largest investment in the US market to date, LLYC will seek to reinforce its deep digital business operation, the area that integrates all its artificial intelligence services, digital transformation and inbound marketing. This is the fastest-growing business for the firm, representing a third of its revenue, growing 98% in 2022.
In 2022, LLYC reported an income of 89.5 million euros ($98 million), 39% more than in 2021, with an operating income, a total excluding re-invoicing of client expenses, of 72.7 million euros, 36% up from last year.
With its BAM acquisition, LLYC --which practically doubled in size in income and EBITDA in two years (+90%), is trying to grow 100% in the next five years, including the acquisition of companies in key areas or strategic markets.
With BAM, LLYC US, the subsidiary in the country, will become the third largest division of the company, with consolidated revenue of $17 million. Spain is the major market ($39 million), and Mexico is its second largest ($18.1 million).
BAM will continue doing business under its own brand and will permit LLYC expand its operations in the US West coast.
“This transformative acquisition will allow LLYC to continue with its expansion in the U.S. as well as throughout Latin America,” said Antonio Peña, Miami-based co-chair of Greenberg Traurig’s Latin America Practice, a firm representing the Spanish company.