Ad agency Olson is bought for $295 million

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Nancy Kuehn | MSPBJ

Olson CEO John Partilla

Mark Reilly

Managing Editor- Minneapolis / St. Paul Business Journal

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Olson, the largest ad agency in the Twin Cities — and one of the largest independent shops in the country — has agreed to be bought. But not by another ad firm.

Instead, it's selling to ICF International of Fairfax, Va., a technology consulting firm, which will pay $295 million to KRG Capital Partners (Olson's private equity owner) and other minority shareholders . AdWeek reports the all-cash deal is set to close by mid-November; Olson CEO John Partilla will continue to lead the agency as a unit of ICF.

RELATED: The Biggest Advertising Agencies in the Twin Cities

The Star Tribune has a take on what the deal could mean for Olson, whose clients include Amtrak, Target and Luxottica. Among the biggest advantages would be more international clients, owing to the broader reach of ICF.

RELATED: Q&A with John Partilla

Traditionally, ad firms are bought by larger ad or media companies, or they stay independent. But that's starting to change, notes AdAge, as tech consultancies see value in the consumer insights that ad experts have.

Mark Reilly manages daily and weekly coverage at the Business Journal newsroom.