Analysts said that Providence Equity’s $580M takeover of London-based Chime Communications "should provide a boost to the agency’s sports and entertainment business as it seeks a foothold" in the U.S., according to Michael Smith of SPORTSBUSINESS JOURNAL. Its sports offering, through CSM Sport & Entertainment, "represents about two-thirds of Chime’s overall business." CSM "had publicly expressed its plan to increase its sports-related revenue in the U.S., even before Providence formalized its offer within the last two weeks." But if Providence’s acquisition closes, "it could provide a significant shot of resources and expertise" for CSM CEO Zak Brown, who was promoted to that role in March. While neither Brown nor any Providence official "would speak about the deal, others saw the equity investment as only a positive for CSM’s growth efforts." Chuck Baker, a partner at merger-and-acquisition firm DLA Piper, said, “I believe Providence, with its track record of savvy U.S. sports property investing and the successful build-out of its existing sports portfolio, should catalyze Chime’s efforts to expand in the U.S. and further integrate its sports marketing business domestically.” Insiders said that "they heard only in the last four weeks or so of Providence’s interest in Chime, which formerly was a public company that will become private under Providence." Insiders said that Providence’s ownership of Chime will do two things for CSM: "add money to the acquisition budget and provide guidance on CSM’s growth." CSM has established a North American headquarters in a small N.Y. office, and Brown, who is based in London, "is looking for a director to run CSM operations in the U.S." (SPORTSBUSINESS JOURNAL, 8/10 issue).
