The acquisition will be implemented by way of a scheme of arrangement under which Mitchell shareholders can elect to receive either $1.20 cash per Mitchell share, or Aegis shares, or a combination of the two.

Mitchell’s board of directors have unanimously recommended shareholders accept and vote in favour of the Scheme, in the absence of a superior proposal and subject to an independent expert concluding that the Scheme is in the best interests of Mitchell shareholders.

Harold Mitchell, group executive chairman of Mitchell Communication says, “I am delighted that we have reached agreement with Aegis over a deal which I believe is in the best interests of our people, our clients and our shareholders.

“Aegis is the best placed of the global agency groups for the convergent future, with a strong focus on digital and media. We are convinced they have enormous growth ahead of them and having Mitchell as part of their global network will be an important part of achieving that.”

For the past six years Mitchell has been Australia’s largest media buyer. In the year to June 30, 2009 the company reported profit before tax of $27m on revenue of $225m. As at  December 31, 2009 Mitchell had gross assets of $508m.

Also commenting, Jerry Buhlmann, CEO of Aegis Group says, “We are pleased to announce that we have reached agreement to buy Mitchell, which is a hugely successful company with a strong track record of profitable growth driven by its market-leading positions in both traditional and digital media.

“Mitchell is the leading marketing communications group in Australia, the eighth largest ad spend market in the world, and this acquisition is a further step in transforming Aegis’ operations in the Asia-Pacific region.”

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