• by Steve McClellan  @mp_mcclellan, July 11, 2011

For years, the UK has had two shops branded MediaVest -- one the leading independent and the other run by Publicis Groupe's Starcom MediaVest Group. Now, Aegis Group has put an end to any marketplace confusion -- it has acquired a majority stake in the independent shop and is retiring its moniker.  

Aegis confirmed Monday that it has acquired control of MediaVest Manchester, the largest independent media shop in the UK. The total purchase price -- to be paid out over time -- could top $150 million, subject to certain performance goals, the company said.

The Manchester-based indie media shop, founded in 1995, will be folded into Aegis' flagship Carat operation and its search unit iProspect and rebranded as such.

With the acquisition, Carat recaptures sole possession of second place in the UK billings rankings by agency brand. According to research firm RECMA, GroupM's Mindshare had climbed from the third-place slot to a second-place tie with Carat in 2010 when both agencies posted billings totaling nearly $3 billion: Mindshare grew 11%, while Carat grew 3%. Both shops commanded an 11.4% share of the UK market last year.

The purchase adds another $383 million in billings to the Aegis coffers, bringing the holding company's total UK market share to 16.5% according to the RECMA figures.

WPP's GroupM, however, still retains its dominant No. 1 position in the UK market, by holding company, with a nearly 39% share of billings. Group M's MediaCom and MEC, along with Mindshare, are all top-five media agencies in the UK as ranked by billings.

Aegis CEO Jerry Buhlmann said the transaction is one of a number of strategic deals that the holding company will pursue to boost market share and "further increase our performance marketing and digital capabilities."

Publicis' SMG UK had held just under 20% of MediaVest Manchester (hence its name), but sold the interest back to the shop's principal owners earlier this year. SMG, which purchased the stake in the independent agency in 1995, also operates MediaVest UK, a separate agency that is based in London. Aegis said its transaction "has no impact on SMG's UK business."

Andy Jeal and Dave Lucas, managing partners of the acquired shop, whose clients include clothing marketer JD Williams, vitamin manufacturer Holland and Barrett and travel agency Thomas Cook, are remaining on board to manage its operations, Aegis said.

Initially, Aegis acquired 75% of the agency, with the option to purchase the remaining 25% by way of a put and call option that can be triggered in 2016. In its last fiscal year, MediaVest Manchester recorded pre-tax profits of $11.8 million and its gross assets were valued at $78 million, per Aegis.

The transaction is the second agency acquisition deal Aegis has struck since confirming in late June that it was in exclusive talks with Ipsos to sell its huge media and marketing research unit Synovate. A week ago, it confirmed an agreement to purchase Japan-based digital agency FileFix, which will become a unit of Isobar when the deal is completed. An Aegis rep said Monday that the talks with Ipsos about acquiring Synovate are ongoing.

The research unit posted worldwide gross revenues of more than $910 million, up 10% in 2010. A possible sale has prompted speculation that a slimmed-down Aegis focused on planning and buying may also go into play.