UKNM: razorfish buys chbi

[Richard Houston]

Official statement from Revolution's Wall, posted by Gordon MacMillan:


CHBI RAZORFISH ANNOUNCES GLOBAL PARTNERSHIP


         Leading UK new media company, CHBI, announces a

         new partnership with renowned cutting-edge US

         equivalent, Razorfish Inc., in a deal which aims to create a

         single international brand to lead the global growth of

         integrated new media solutions. New York based

         Razorfish Inc. is acquiring 100% of CHBI from June 1st

         1998. The new UK company will be called 'CHBI

         Razorfish'.


         Razorfish Inc., founded in 1995 by Craig Kanarick and

         Jeffrey Dachis, is a strategic digital communications

         company known for its award-winning design, original

         content and mission-critical digital solutions. It has offices

         in New York and San Francisco, employs 140 staff and is

         regarded as a leading developer of interactive solutions in

         the US. Its turnover for this year is $20m. A minority of

         Razorfish Inc. is owned by Communicade, a division of

         Omnicom Inc.


         CHBI was formed three years ago in 1995 by co-founders

         Mark Curtis and Mike Beeston. Currently employing a

         staff of 28 it has a projected turnover this year of �2m and

         a strong client base including, RAC, Virgin, Telewest,

         Beefeater Gin, Carlsberg, Office of Fair Trading and

         Goldfish. 


         Evolving organically, CHBI directors recognised the need

         for a partner and investor over a year ago and have held

         discussions with a variety of suitors ever since. Mike

         Beeston, Managing Director at CHBI comments: "We

         were determined to keep developing our own brand and

         culture, to wait for our perfect match and not jump into

         bed with just anyone - Razorfish is the ideal cultural and

         professional fit for CHBI and means together we will

         undoubtedly become the most innovative new media force

         in the world. This union gives us the opportunity to grow

         and learn from a larger and diverse talent-pool, and the

         financial stability to ensure that we are poised to take full

         advantage of the massive opportunities new media offers."


         Mark Curtis, Strategic Solutions Director of CHBI, said

         "The fact that Razorfish work has uniquely been selected


         to appear in the San Francisco Museum of Modern Art is

         just one example of why we are so pleased with this deal.

         They have a client list that features pre-eminent

         companies from the world of financial services, media and

         telecoms. The combination of accomplishments that both

         sides bring to the mix will create a powerful new entity."


         Jeffrey Dachis, President and Chief Executive Officer of

         Razorfish Inc. said "Like Razorfish in the US, CHBI has

         created a strong identity and robust reputation as a top

         new media strategy company in the UK - we are equals in

         our own markets - our values, vision and ambitions are

         strongly in line with each other. We are more than

         pleased that we are combining the extremely talented

         individuals from both companies into one single operating

         unit."


         "CHBi has consistently achieved good levels of profit, has

         marketed itself rigorously, and has continuously retained

         both its clients and its staff in a notoriously fickle industry.

         Sound management is critical in this emerging business

         market and as we've seen recently in the UK, very few

         companies possess all the component skills to achieve

         the required balance for growth. CHBI meets the essential

         criteria and like Razorfish has the foresight to drive the

         industry forwards. There is a clear synergy which can offer

         our US companies a wide variety of new learning and vice

         versa."


Richard Houston

Consultant

Webmedia Group Ltd


T: +44 (0)171 494 3177

F: +44 (0)171 434 1304

E:

richardwebmedia [dot] com