Toronto-based Envoy Communications Group has acquired London-based agency Leagas Delaney. The merger comes as Envoy continues its strategy to build the "best of breed" companies in each of its core disciplines, namely marketing, design and technology, hiring financial adviser Merrill Lynch & Co. to facilitate its global acquisition strategy.

"This is a strategic alliance with an internationally minded brand communication company with technology and retail knowledge," explains CEO Tim Delaney.

"We asked ourselves how we could progress and considered various options. In the end, Envoy emerged as an interesting company that wasn't going to subsume us and that wanted a brand communications arm. Also, the ability to help and grow with our international clients was restricted by our rather

limited capital base. Now we are able to progress by looking further afield in the international arena."

The deal is expected to close over the next two months, allowing both companies to move ahead of the market in advertising creative terms, especially in the areas of digital technology and retail design.

Envoy Communications provides business-building solutions to an array of international clients, including Adidas-Salomon in Canada, BASF, CIBC, Salomon Smith Barney and TD Waterhouse (USA). Envoy owns Toronto agency Communique and purchased New York shop Hampel/Stefanides in 1998.

Leagas Delaney has offices in London, Hamburg, Paris, Rome and San Francisco. Its major clients include Adidas in all its offices, Lycos and Goodyear across Europe, and Barclays Bank, Harrods, the BBC and Hyundai in London.

Web.files

Envoy Communications Group> www.envoy.to

Leagas Delaney> www.leagas.com