“Agency.com-lite” expands into mainland Europe

iCrossing bought their first shop in mainland Europe with the purchase of German search and affiliate shop 3GNet.

The buy brings iCrossing a 70-person outfit that specializes in search engine optimization, along with paid search and affiliate marketing — basicvally all the stuff that iCrossing specializes in already. 3GNet is based in Munich and has an office in Berlin. Financial terms were not disclosed.

The acquisition is the fifth in the past two years for iCrossing, which is backed by $120 million in financing. The agency has used earlier acquisitions of Newgate Internet (paid search) and Proxicom (Web development) to add capabilities to its routes as a search optimization firm. It also bought Spannerworks in the UK in February 2007, giving the company a base in London.

Most of iCrossing’s management over that time has come from Agency.com — including Don Scales, iCrossing’s President who joined when he left Agency.com over “strategic differences” two years ago.

3GNet clients include Epson, which is an iCrossing client in the U.S., eBay and Esprit.

With the acquisition, iCrossing will have more than 200 employees in Europe. The addition of Proxicom and geographic expansion makes iCrossing more than a search shop, Herzog said.

“Our competitive set has clearly changed,” he said. “We’re seeing Avenue A, Digitas and the ad holding companies as the set we’re up against most these days.”