Dentsu Aegis Network has acquired search and content marketing agency Covario.
Covario has a standalone SEO software unit and is headquartered in California. The firm has more than 140 professionals who provide paid and organic search, social media, and content marketing agency services to global brands and direct marketing clients. The acquisition is expected to close in Q4 2014.
Following the completion of the deal, Covarioâ€™s agency business will become part of Dentsu Aegis Network, and will transition toward operating as iProspect â€“ Dentsu Aegis Networkâ€™s global digital performance agency. Michael Gullaksen and Jeff Johnson, co-CEOs of Covario will have key senior executive positions in the combined Covario / iProspect organisation moving forward.
Meanwhile Covarioâ€™s Rio SEO software unit, which offers local SEO, enterprise search, and social media automation and analytic tools, will remain independent following the transaction and will continue to work with clients where it has an existing relationship.
Nigel Morris (pictured), CEO of Dentsu Aegis Network Americas & EMEA said: â€śWe have a very clear strategy for the capabilities and agencies we bring into our operating model.Â […] As points of engagement and transaction come closer together, it is crucial for our clients to have a dominant position in all key areas of the consumer journey.â€ť
â€śWith marketers looking to search, social and mobile as core tenets of their advertising strategies, the combination of iProspect and Covario creates a uniquely powerful and compelling offer fit for todayâ€™s market demands,â€ť said Jeremy Cornfeldt, president, iProspect US.
â€śCovarioâ€™s San Diego-based headquarters also provides a powerful West Coast presence that is critical for iProspectâ€™s growth,â€ť he added.