The public relations agencies are reorganized after the purchase of Dattis by Llorente & Cuenca was sealed this Thursday, two of the largest companies in this sector that have operations in Colombia.
The transaction was closed for around six times the Ebitda, close to US$10 million, and adds to the moves that Llorente & Cuenca has been making after closing the purchase of 70% of Lambert Global at the end of Februarya communications company specializing in public relations and marketing in the US.
Last year, the consulting firm’s operating income grew 14% and exceeded US$80 million, while total income showed an increase of 13% with more than US$100 million.
The firm’s net profit rose to US$10 million last year, 24% more. “We have demonstrated our ability to overcome new challenges and boldly achieve the goals we have set for ourselves.”said Alejandro Romero, Partner and Global CEO of Llyc at the time.
The agency is listed on the Spanish Stock Exchange and this Thursday closed above US$10.2.
The operation in Colombia
In Colombia there are more than 23 communications agencies established providing these and more corporate commercial servicesas reported by the agency union, the National Union of Strategic Marketing and Communications Companies (Unemec).
“To now be able to add the talent, size and expertise of Dattis to our value proposition, It means taking an even greater leap in our capacity, business vision and offer to our clients in the country.”said Juan Carlos Gozzer, CEO of Lllyc for Latin America.
Llorente & Cuenca will have an initial 78.69% stake in Dattis, with a valuation of six times Ebitda. The remaining 21.31% of the company will remain in the hands of Andrés Ortiz, senior partner.
In turn, Darío Vargas, founding partner of the company, sells his entire stake, as well as other minority partners.
In Colombia, Dattis closed 2022 with operating income of $25,132 million, 34.92% more than the previous year. Net profit also increased by more than 30% and reached $4.7 billion.
It has been in operation for 25 years, with more than 100 collaborators and more than 300 clients served throughout its history. Besides, 70% of women are in management positions and it also has a presence in Ecuador and Peru.
It was founded by Darío Vargas and currently has Andrés Ortiz as its senior partner and Camila Gómez as its president..
“The dream and journey that my partner and founder of Dattis, Dario Vargas, started and that We knew how to evolve and strengthen with the current management team, today it receives its fruit with this acquisition by a great companywhich results in benefits for shareholders and for the future of our organization,” said Andrés Ortiz.
Dattis will become part of the Llyc group and will continue operating during 2024 under the Dattis by Llyc brand, in parallel with Llyc’s operation in Colombia. In addition, during this year, both companies will work on the integration of operations with a view to 2025.
Starting in 2025, already under the Llyc brand, Andrés Ortiz will lead the unified structure together with Camila Gómez and Alejandra Aljure, current general director of Lloreda & Cuenca Colombia.
For its part, Llyc recorded operating income of $19,861 million, 38.17% more than the previous one. In the case of net profit, there was a growth of 12.63% to $2,648 million.
These two agencies also stand out in the Central Agency Index, prepared by LR and which measures the number of communications that passed the editorial filters to be published and distributed to audiences on the media’s website.
If the data for 2023 is analyzed, The agencies that make up the top 3 by number of publications were: BCW Moving People, with 78 communications; Babel, with 70; and Dattis, with 52. The top five was completed by SEC Newgate (41) and MileniumGroup (36).
In 2022, the podium included: MileniumGroup (128 published statements), High Results (90) and BCW Moving People (77). In 2021, the leaders were: Llorente and Cuenca (20), in second place tied Dattis (16) and High Results, with 16 each; and BCW Moving People (15).
The business with Lambert
The acquisition by most of the North American communications firm projects revenues for Llorente & Cuenca of around US$35.1 million, an EBITDA of US$9.7 million. In principle, US$18.2 million were transferred as an advance to seal the deal.
In the United States, Lloreda & Cuenca already has participation from firms such as EDF Communications and BAM. In total, the firm has a presence in 21 countries, and plans to continue expanding.
