Snyder Communications
| Company type | Public |
|---|---|
| Industry | Advertising, Marketing |
| Founded | 1988 |
| Founder | Daniel Snyder, Michelle Snyder |
| Defunct | 2000 |
| Fate | Acquired by Havas Advertising |
| Headquarters | United States |
Key people | Daniel Snyder (CEO) |
| Products | Direct marketing, database marketing, product sampling, sponsored information displays, call center management, field sales operations |
Snyder Communications Inc. (SNC) was a U.S.-based advertising firm established in 1988 by Daniel Snyder and Michelle Snyder. The company focused on providing outsourced marketing solutions such as direct marketing, database marketing, proprietary product sampling, sponsored information displays, call center management, and field sales operations.
In September 1996, SNC went public by offering 7.8 million shares at $17 each, raising upwards of $130 million. At the age of 32, Daniel Snyder became the youngest CEO leading a company listed on the New York Stock Exchange.
On April 4, 2000, SNC was acquired by Havas (then known as Havas Advertising) through an all-stock transaction valued at more than US$2 billion.
History
SNC experienced swift growth through a series of acquisitions. In 1995, it took over Arnold Communications from Ed Eskandarian. Between early 1997 and 1998, the company expanded its portfolio by acquiring several businesses: Medical Marketing Detailing Inc., which specialized in pharmaceutical marketing services; American List Corp., managing a database exceeding 30 million students for direct mail and telemarketing campaigns; Good Neighbor Direct, which served clients across 5,000 retail locations; and Brann Holding Ltd., a direct marketing firm based in the United Kingdom.
From 1995 to 1996, SNC's revenue nearly doubled organically to reach $82.8 million. During that period, Medical Marketing Detailing contributed roughly $35 million in revenue for its fiscal year ending in October, while American List generated about $19 million in 1996. The combined cost of these two acquisitions was slightly over $200 million. Before going public, Ventiv Health was spun off to shareholders, and SNC’s internet ventures were separately listed as Circle.com tracking stock.
Following the IPO, within two years Snyder orchestrated at least fourteen acquisitions. In March 1997, SNC added PromoTech Research Associates, a pharmaceutical marketing communications company. By December 1997, it had acquired Blau Marketing for $72 million. It also purchased two pharmaceutical contract sales organizations—Pharmflex for $34 million and Rapid Deployment Group Ltd. for $24.5 million—both providing sales services to pharmaceutical firms. In September 1998, SNC expanded into Europe by acquiring MKM Marketing in Munich for $58 million.
January 2000 saw the launch of Bounty SCA Worldwide by SNC to unify the various marketing service companies it had acquired over preceding years.
Sale to Havas Advertising
At the close of 1999, Snyder decided to sell SNC to concentrate on operating the Washington Redskins, which he had purchased earlier that year. On April 4, 2000, during a period marked by active mergers and acquisitions, Havas Advertising agreed to buy Snyder’s company in an all-stock deal valued above US$2 billion. Before this transaction, SNC’s market value was approximately US$1.3 billion. Following the acquisition, SNC’s three divisions—Bounty SCA Worldwide, Arnold Communications, and Brann Worldwide—were integrated with Euro RSCG, Campus, and Diversified Agencies respectively. Arnold Communications was rebranded as Havas' second network under the name Arnold Worldwide Partners.