EXCLUSIVE: Independent creative agency BWM has acquired digital firm Sputnik, whose US parent company Kit Digital has just been placed into administration.
Sputnik managing director Nick Lewis told AdNews the sale of the agency was unrelated to Kit Digital's woes and said the moves to divest the agency from its parent company had been initiated by himself in early 2012.
The agreement with BWM was struck just before Christmas.
Sputnik will retain its own brand but will now operate out of BWM's Sydney and Melbourne offices. Lewis added it will provide synergies for shared clients such as Sanitarium and GE Money.
BWM chief executive Paul Williams said: "Sputnik will continue to operate under its own brand, and its current business leadership with Nick Lewis as chief executive, but we will be looking to collaborate on projects and clients where this adds value.
"Sputnik is a good fit for BWM because it complements our offer. As the lead creative agency, we develop ideas that get Australians talking. Sputnik extends our reach through digital channels and enhances our digital specialist capacity."
Most of the Sputnik staff will stay on with the agency, however a “handful” of non-client facing roles will be made redundant. The agency currently has over 30 employees.
Lewis said: “For us, it's business as usual but with an increase of scale and capability.”
As a result of Kit Digital's administration, Sputnik had officially also been placed under administration according to an insolvency notice filed to ASIC.
Kit's other holdings in Australia included digital agency Hyro which it had only acquired mid last-year.
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