Snyder Communications

Snyder Communications Inc. (SNC) was founded in 1988 by Daniel M. Snyder and his sister Michelle Snyder. Their activities were mainly outsourced marketing services, such as Direct marketing, database marketing, proprietary product sampling, sponsored information display in prime locations, call centres, field sales.

There was an Initial Public Offering for SNC in September 1996 with a sale of 7.8 million shares at $17 a share. The IPO raised more than $130 million. Daniel Snyder became the youngest ever CEO of a New York Stock Exchange listed company at the age of 32 [cite news| url = http://www.fastcompany.com/magazine/09/one.html | title = The Secrets of Their Success - and Yours |date = June, 1997 | publisher = Fast Company Magazine ] .

Acquisition spree

SNC grew aggressively through acquisitions. In 1995, Arnold Communications boss Ed Eskandarian sold out to Snyder. It acquired four other firms since the beginning of 1997, including Medical Marketing Detailing Inc., a New York-based provider of pharmaceutical marketing services; American List Corp. of Mineola, New York, which maintains a database of more than 30 million students that it rents to direct mail and telemarketing companies;fair Neighbor Direct, which provides marketing services for clients in 5,000 retail outlets; and Brann Holding Ltd., a British direct marketing company.

On an organic basis, SNC's revenue nearly doubled between 1995 and 1996 to $82.8 million. Medical Marketing Detailing itself had revenue of about $35 million in its fiscal year ended in October. American List's revenues in 1996 were about $19 million. The cost of those two acquisitions was just over $200 million [cite news | url = http://www.washingtonpost.com/wp-srv/business/longterm/post200/data/bftc079.htm | title = Snyder Communications |date = April 28, 1997 | publisher = Washington Post ] .

Prior to the IPO, Ventiv Health was hived off and distributed to the existing SNC shareholders. Circle.com, the online activities of SNC, was listed separately as a tracking stock.

In March 1997, SNC bought PromoTech Research Associates, a pharmaceutical marketing communications and direct marketing firm for an undisclosed sum [cite news | url = http://www.bizjournals.com/washington/stories/1999/03/29/daily18.html| title = Snyder Communications buys PromoTech |date = April 1, 1999 | publisher = Washington Business Journal ] .

In December, 1997, SNC agreed to buy Blau Marketing, a closely held direct marketing firm based in Wilton, Connecticut, for $72 million [cite news | url = http://query.nytimes.com/gst/fullpage.html?res=9A0DE1DA1131F932A35752C0A96E958260 | title = Snyder Communications to Add Direct Marketing Firm |date = January 1, 1998 | publisher = New York Times ] . It also bought two pharmaceutical contract-sales organizations for a total of $58.5 million [cite news | url = http://query.nytimes.com/gst/fullpage.html?res=9507E0DE123CF933A25751C1A961958260 | title = Snyder Communications Acquires 2 Sales Businesses |date = December 10, 1997 | publisher = New York Times ] : Pharmflex for $34 million and Rapid Deployment Group Ltd. for $24.5 million. Pharmflex, of Malvern, Pennsylvania, and Rapid Deployment, of Winchester, England, provide sales services to pharmaceutical companies.

In September 1998, acquired MKM Marketing of Munich, Germany for $58 million [cite news | url = http://www.bizjournals.com/washington/stories/1998/09/14/daily5.html| title = Snyder Communications scores |date = September 15, 1998 | publisher = Washington Business Journal ] .

At the end of 1999, SNC was put up for sale by the principal shareholder, Daniel Snyder, who wanted to concentrate on football [cite news | url = http://www.forbes.com/2000/09/08/mu1.html | title = The Greening Of The Redskins |date = September 8, 2000 | publisher = Forbes Magazine ] . In the meantime, in January 2000, SNC officially launched Bounty SCA Worldwide [cite news | url = http://promomagazine.com/mag/marketing_organizing_tool_chest/| title = Organizing the Tool Chest: Bounty puts the service in Snyder |date = February 1, 2000 | publisher = Promo Magazine ] , a division that organizes the numerous marketing services businesses it has acquired over the previous few years.

Enter Havas Advertising

On April 4, 2000, at the height of the M&A frenzy, Havas Advertising agreed [cite news | url = http://www.secinfo.com/dSAKe.51Sq.htm| title = Havas Filing 425 (Snyder Communications Inc |date = 18, July, 2000 | publisher = US Securities & Exchanges Commission ] to acquire Snyder Communications, Inc. (SNC) in an all-share transaction in a deal worth in excess of US$2 billion. Just prior to the takeover, the market capitalisation of SNC was just US$1.3 billion.

ee also

* Daniel Snyder
* Havas

References