The deal is expected to kickstart Edelman's development in mainland China. Earlier this year, the agency parted ways with its China management team of Jeff Schultz and Martin Alintuck – installing regional corporate MD Charles Lankester instead.
The Pegasus acquisition will see the local agency operate as a sister agency to Edelman under a newly formed holding company in China – Daniel J. Edelman Inc – which is also expected to explore acquisitions in the online and public affairs spaces.
“We want to increase and deepen our footprint in this market and we think Pegasus complements our global strengths in consumer PR very nicely,” said Edelman regional president Alan VanderMolen.
Pegasus will continue to be headed by co-founder and MD Steven Cao, who will report to VanderMolen. According to industry sources, the agency had been in talks with Omnicom about a possible joint venture, before Edelman’s late entry into the frame.
Pegasus’ client base includes Yili, Volvo, Siemens, BMW and Samsung Mobile – and the agency counts over 100 employees in Beijing, Shanghai and Shenzhen. “We were attracted to Edelman because of its independence, innovation, client service and corporate culture,” said Cao.
