Snyder Communications
Encyclopedia
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 centre
s, 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.
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.
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.
In December 1997, SNC agreed to buy Blau Marketing, a closely held direct marketing firm based in Wilton, Connecticut
, for $72 million. It also bought two pharmaceutical contract sales organization
s for a total of $58.5 million: 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.
At the end of 1999, SNC was put up for sale by the principal shareholder, Daniel Snyder, who wanted to concentrate on football
. In the meantime, in January 2000, SNC officially launched Bounty SCA Worldwide, a division that organizes the numerous marketing services businesses it has acquired over the previous few years.
agreed 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.
Daniel Snyder
Daniel M. Snyder is the current owner of the Washington Redskins American football team, owner of the Dick Clark Productions television production company, and primary investor in Red Zebra Broadcasting, which is home to the Redskins Radio Network. Snyder has a net worth of $1.05 billion...
and his sister Michelle Snyder. Their activities were mainly outsourced marketing services, such as Direct marketing
Direct marketing
Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional...
, database marketing
Database marketing
Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes...
, proprietary product sampling, sponsored information display in prime locations, call centre
Call centre
A call centre or call center is a centralised office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call centre is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing,...
s, field sales.
There was an Initial Public Offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
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
Daniel Snyder
Daniel M. Snyder is the current owner of the Washington Redskins American football team, owner of the Dick Clark Productions television production company, and primary investor in Red Zebra Broadcasting, which is home to the Redskins Radio Network. Snyder has a net worth of $1.05 billion...
became the youngest ever CEO of a New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
listed company at the age of 32.
Acquisition spree
SNC grew aggressively through acquisitions. In 1995, Arnold CommunicationsArnold Worldwide
Arnold Worldwide is an advertising agency headquartered in Boston, Massachusetts. The agency has 15 offices in 12 countries, including Amsterdam, Boston, Lisbon, London, Madrid, Melbourne, Mexico City, Milan, New York, Prague, São Paulo, Shanghai, Sydney, Toronto and Washington DC...
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
Mineola, New York
Mineola is a village in Nassau County, New York, USA. The population was 18,799 at the 2010 census. The name is derived from a Native American word meaning a "pleasant place"....
, which maintains a database of more than 30 million students that it rents to direct mail
Direct mail
Advertising mail, also known as direct mail, junk mail, or admail, is the delivery of advertising material to recipients of postal mail. The delivery of advertising mail forms a large and growing service for many postal services, and direct-mail marketing forms a significant portion of the direct...
and telemarketing
Telemarketing
Telemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.Telemarketing can also include recorded sales pitches...
companies;fair Neighbor Direct, which provides marketing services for clients in 5,000 retail outlets; and Brann Holding Ltd., a British direct marketing
Direct marketing
Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional...
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.
Prior to the IPO, Ventiv Health was hived off and distributed to the existing SNC shareholders. Circle.com, the online
ONLINE
ONLINE is a magazine for information systems first published in 1977. The publisher Online, Inc. was founded the year before. In May 2002, Information Today, Inc. acquired the assets of Online Inc....
activities of SNC, was listed separately as a tracking stock
Tracking stock
Tracking stock or targeted stock are specialized equity offerings issued by a company that is based on the operations of a wholly owned subsidiary of a diversified firm. Therefore, the tracking stock will be traded at a price related to the operations of the specific division of the company being...
.
In March 1997, SNC bought PromoTech Research Associates, a pharmaceutical marketing communications and direct marketing firm for an undisclosed sum.
In December 1997, SNC agreed to buy Blau Marketing, a closely held direct marketing firm based in Wilton, Connecticut
Wilton, Connecticut
Wilton is a town nestled in the Norwalk River Valley in southwestern Connecticut in the United States. It is located in Fairfield County. As of the 2010 census, the town population was 18,062. In 2007, it was voted as one of CNN Money's "Best Places to Live" in the United States.Located along...
, for $72 million. It also bought two pharmaceutical contract sales organization
Contract sales organization
A Contract Sales Organization is a firm or company that assists companies in the sales and marketing of their products and/or services. The term CSO is especially prevalent in the life sciences, medical device, and medical product launch sectors...
s for a total of $58.5 million: Pharmflex for $34 million and Rapid Deployment Group Ltd. for $24.5 million. Pharmflex, of Malvern, Pennsylvania
Malvern, Pennsylvania
Malvern is a borough in Chester County, Pennsylvania, United States. The population was 2,998 at the 2010 census. The main road through the borough is King Street, although the borough is also bordered by Paoli Pike on the south, and is near US 30 on the north. The primary cross street is Warren...
, and Rapid Deployment, of Winchester
Winchester
Winchester is a historic cathedral city and former capital city of England. It is the county town of Hampshire, in South East England. The city lies at the heart of the wider City of Winchester, a local government district, and is located at the western end of the South Downs, along the course of...
, England, provide sales services to pharmaceutical companies.
In September 1998, acquired MKM Marketing of Munich
Munich
Munich The city's motto is "" . Before 2006, it was "Weltstadt mit Herz" . Its native name, , is derived from the Old High German Munichen, meaning "by the monks' place". The city's name derives from the monks of the Benedictine order who founded the city; hence the monk depicted on the city's coat...
, Germany for $58 million.
At the end of 1999, SNC was put up for sale by the principal shareholder, Daniel Snyder, who wanted to concentrate on football
American football
American football is a sport played between two teams of eleven with the objective of scoring points by advancing the ball into the opposing team's end zone. Known in the United States simply as football, it may also be referred to informally as gridiron football. The ball can be advanced by...
. In the meantime, in January 2000, SNC officially launched Bounty SCA Worldwide, 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 AdvertisingHavas
Havas is the second largest advertising group in France and is a "Global advertising and communications services group" and the sixth-largest global advertising and communications group worldwide, operating on the communications consulting market through three main operational divisions:*Euro RSCG...
agreed 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.