New York-based Agency.com said Tuesday it will merge with a subsidiary of San Francisco investment group Seneca Investments. Agency.com is a 6-year-old consultancy specializing in strategy, branding and technology services for companies that do business on the Web via wireless devices and on interactive television. The deal requires approval from certain shareholders, and the companies will have a special meeting by the end of September. If passed, Agency.com shareholders would receive $3.35 cash per share, up from a $3-per-share offer made originally in mid-May.
Internet consultancy Agency.com says it plans to reorganize its business by closing its Portland, Ore., offices and cutting about 19 percent of its work force, or 200 employees. The New York-based company--which provides businesses with advice on the interactive and digital realm, including marketing and technologies--plans to restructure its operations beginning Sept. 21 and sharpen its focus on the most important areas of its business. Agency.com CEO Chan Suh said that employees in New York, who were all accounted for after last week's terrorist attacks on the city, are unaffected by the restructuring. Agency.com will take a charge in the third quarter of about $18 million to $23 million related to the restructuring, which it expects to result in $25 million in annual savings. The company also said that its pending sale to Seneca Investments is on track and will close by the end of October.