IPMG, the $400m privately owned print communications group, is to engage in a strategic and financial alliance with SEMA that may lead to a full blown marriage, if all goes to plan.
The initial plan is for the two companies to collaborate in the direct mail and digital marketing sector, with a path to equity ownership of Sema for IPMG.
The alliance provides for sales, marketing and production co-operation.
Kevin Slaven CEO of IPMG, says, “The alliance with SEMA provides us with the opportunity to further realise our vision to create meaningful connections between brands and audiences.
“SEMA’s skills in data capture and cleansing together with their personalisation and digital messaging capabilities complements IPMG’s existing marketing communications services.”
IPMG recently rebranded and announced its intention to continue to enhance its service offerings in a way that empowers brands to connect more effectively with their audiences.
John Stewart, managing director of SEMA, says, “The alliance with IPMG is an exciting next step in the turnaround of SEMA.
“We have successfully moved the company into the digital marketing world and are able to offer our customers true multi channel messaging capabilities.
“Nevertheless, our expertise in data, our market credibility and service offerings will be greatly enhanced by working closely with IPMG.
“The financial security IPMG brings to us provides the certainty we need for our future.
“It is also of significant value to our customers as we will be able to introduce them to the experience and expertise of IPMG in marketing communications.”
In 2012 Sema was forced into administration with debts of some $7.3m, but was swiftly bought by a four-strong management team lead by Stewart, which turned the company’s focus to the digital marketing world offering digital mail, direct mail, mobile marketing and data.
He says, “Sema did manage to get itself into a bit of a mess and we have largely been able to fix that. But there still needs to be some form of consolidation while printing finds its future.
“Being the size we are we need good strong partners and IPMG fits that. I think the types of printing that we do and our ability with data has a big future but being partners with IPMG will be good for us.”
IPMG started the year looking at a merger with rival Blue Star which would have created an $800m a year business, but that was called off in May. SEMA’s current turnover is not known, but before it got into its difficulties it pulled in $110m in sales in 2010-11.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter