Emitch acquired The Internet Bureau, New Zealand’s largest online media buying business, for NZ$8.9 ($7.5) million, made up of NZ$6.8 ($5.7) million in cash and the remainder in shares. The purchase is expected to add more than NZ$20 ($16.9) million to emitch’s gross billings for the 2007 financial year and approximately NZ$1.5 ($1.3) million to the net profit.

The Internet Bureau has a 40 per cent share of New Zealand online display market, which is forecast to exceed NZ$40 ($33.8) million in revenues this year.

Dan Pearce, a partner in Holding Redlich’s corporate practice, said that emitch and The Internet Bureau had experienced compound growth of about 50 per cent a year. “There’s every sign that growth will continue or even accelerate,” he said.

The company also acquired software company Onemail and its specialist software products for NZ$500,000 ($422,359) in cash and the same amount in shares. Pearce said this was a strategic acquisition that would capitalise on the fact that Onemail boasts the most advanced suite of direct marketing tools in use.

“These tools will enable emitch’s clients to deliver the highest quality electronic direct marketing campaigns to customers and prospects. The two acquisitions consolidate emitch’s position as Australia and New Zealand’s leading digital advertising business.”

New Zealand firm Simpson Grierson were Holding Redlich’s NZ agents on the deal, while Kensington Swan acted for The Internet Bureau. Middletons advised Onemail.

Pearce said conducting the two acquisitions simultaneously required the coordination of resources between the firm and the client, and a consistency of approach across both transactions, while also recognising that each deal had its own parameters and separate points of negotiation.

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There was also a need to factor in the different tax regimes in New Zealand and the differing approach to capital gains tax and superannuation.

“The most interesting aspect is that we do a lot of work in the media industry generally and this is a part of that industry that is really white hot in terms of the investor and business industry. It is growing very rapidly while the rest of the media is growing at much slower rates. That brings its own rigours in the way you negotiate the deal,” Pearce said.

The deals were settled within a few days of each other.