AGENCY NEWS: Gyro merges with HSR to create global B2B powerhouse
Specialist B2B agency giant Gyro has taken another step towards global domination with the announcement of a merger with US-based HSR.
The merger will allow the newly merged agency to compete more effectively with global agency groups such as McCann and Y&R, claims its management team, with the need for global reach underlined by the recently announced acquisition of Sun Microsystems by Oracle.
GyroHSR - as the new entity is called - has revenues of approximately $100 million (£68 million), 600 staff, and 17 offices in nine countries around the world. Its client roster includes HP, Amex, Pitney Bowes, T-Mobile, Sony, Virgin Atlantic and Nokia.
Gyro and HSR are understood to have been in discussion about some form of deeper relationship for some time, following a relationship facilitated by Pegasus Venture Capital which owned a significant stake in both agencies. Despite this involvement, the agency still describes itself as âowner-managed'.
The existing management team remains in place, with Richard Glasson and Richard Perry (formerly of Gyro) remaining group COO and CEO, whilst Rick Segal of HSR becomes chief executive of North America. Glasson comments, "both Gyro and HSR recognise and embrace the changes that we are seeing in the world of marketing and communications and this is response. This merger creates an agency uniquely positioned to meet the needs of our clients around the world, and able to deliver the truly integrated service that the modern world demands."
Approximately 80 per cent of the new agency's work is B2B, says Glasson, who adds that a consumer specialism will be retained to assist in development of new ideas and concepts. "B2B are not typically early adopters," he explains.
Strategy and operations for GyroHSR will be managed from the London office. The new group now boasts five offices in the US: New York, Cincinnati, Chicago, Denver and San Francisco. No job losses will result from the merger, according to the agency.
Gyro reported revenue figures of £50 million in the 2008 B2B Marketing agency survey
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