Paris headquartered design and pre-media agency Diadeis has acquired a controlling stake in India's largest pre-media agency Alia, which predominantly focuses on fast-moving consumer goods (FMCG).
Diadeis will have 100 per cent control over the next few months. Diadeis, which has annual revenue at about $30 million, is known to have spent between $10 million and $11 million for the initial controlling stake. Both the companies, however, did not disclose the deal value.
While Sanjeev Malhotra, the founder of Alia Group, will exit completely from the venture, Diadeis has decided to retain Alia's existing management to run the show in India and south Asia.
A few global FMCG companies like Unilever, Danone, and Kraft are clients of both Alia andDiadeis.
"The acquisition will give Diadeis entry to few emerging markets in Asia and a strong hold in India," said Jean Charles Morisseau, chairman, Diadeis.
Post acquisition, Diadeis will spend about $1 million to strengthen Alia's operations and technology. The India unit will focus and look for opportunities on new markets like China, Singapore, including options for tuck-in acquisitions, said Sethunath Padmanabhan, Director, Alia.
Post the deal, Padmanabhan will take over as the managing director of the joint entity's operations in Asia.
As a design and pre-media agency, Diadeis works with brand owners on developing their brands-everything from strategically creating of their communication media to orchestrating international communication campaigns.
Alia offers similar services in India, but only for FMCG companies. Post deal, the Indian entity will also start serving the automobile industry, which is one of the core segments for Diadeis.
Padmanabhan said the merged entity has plans to use the India centre as a design hub evenfor European markets. According to industry estimates, production cost of pre-media designs in Europe is four to five times higher in Europe as compared with that of India.
Morisseau said Diadeis is looking for more such acquisitions in countries like China, the United States and Latin America.
"Some deals are like to materialise by end of this year," he added. Diadeis had, in 2009, acquired the Graphotec prepress platform and the Noelink, and has bought P'Reference in 2012.
Alia's founder Malhotra, who is exiting his third start-up, is set to start his new venture in the digital medium.
