Aegis is expected to buy Brindley Advertising next week in a €12 million deal, which will create one of the largest advertising agencies in the State.
Aegis Ireland is owned by Aegis plc, a large British advertising group quoted on the London Stock Exchange.
The new entity is likely to have a turnover of more than €100 million. Both companies specialise in media buying, which involves buying space in newspapers and airtime on radio and television on behalf of clients.
It is a highly competitive business with tight margins. Consequently a wave of consolidation has swept through the industry.
The Aegis-Brindley deal is the latest example of companies combining to leverage their buying power.
The main beneficiary of the sale will be veteran advertising figure Basil Brindley and members of his family. Several members of the Brindley management team are also set to benefit.
Neither party would comment this week on the deal, but it is understood final negotiations are taking place with a view to signing off the takeover sometime next week. Aegis is already the largest spender on press and TV advertising in the country.
Aegis Ireland is one of the fastest growing agencies in Ireland. However, one contract that has eluded the company is the Government's advertising account, which Brindleys has held for many years. Brindleys also recently won the account for many of the Republic's leading universities.
According to figures circulated recently by the National Newspapers of Ireland (NNI), Aegis Ireland placed €10.7 million of advertising in newspapers in the first half of the year. The company owns two subsidiaries in the market, Carat Ireland and Vizeum Ltd.
During this period Brindleys placed €7.2 million of adverts in the papers. This effectively made it the third-largest agency in the press sector. The second largest agency was Mindshare.
The deal between the two companies is the latest sign of consolidation in the Irish market. Over two years ago AFA Advertising and Des O'Meara Ltd merged to form a new entity.
Several advertising businesses have also closed, including Doherty Advertising and Media Guilfoyle.
