RTE to acquire ad agency Copilot for £1bn
RTE has bought Copilot UK for £9.5bn.
Copilot, the agency behind the bestselling Apple iPad, was founded in 2009 and is responsible for the iPad’s app stores, social networks and mobile apps.
It was the first agency to build an app for Apple’s iPad and its apps have been downloaded more than 5 million times.
It has been a tough year for the agency as it has been beset by the collapse of its previous client, Evernote.
In June, Eileen Kelly, E-commerce head of RTE, said it was no longer profitable.
“We were having a tough time, our revenues were not good enough and our profit was nowhere to be found,” she said.
“Our customers were not happy and we were losing customers and not having any money.”
I think it was just that the ad market was so big that we could not make any profit.
“It is just that we did not have enough advertising dollars to make up for it.”
She added that the agency’s financial position was “absolutely not good”.
“We are not even in a position where we are profitable at the moment.”
And that is why I am leaving the agency,” she added.
The agency has not announced a new name for the business, but Ms Kelly said that it was unlikely that it would be renamed, saying that it needed to be recognised as a commercial agency and be able to work.
It was hoped that Copilot would take on the responsibility of developing Apple’s iOS app, which would then become the dominant app for the company’s tablets.
Ms Kelly said she was confident that the deal would be successful.”
The key to a successful deal is the ability to work together, to create value for the other party and I think that is the way we will do it,” she told the BBC.”
As soon as I was made aware of this, I started a process to try to work with the company to try and figure out how we can make it happen.
“Mr Kelly said it had been “a long time coming”.”
I am absolutely sure that it will be a successful partnership and we are looking forward to doing business with the people at Copilot,” he said.
The deal will bring Copilot’s revenue to £30m for the next two years and will see the agency expand its portfolio of commercial products to include social media and ecommerce.