Cordiant to Buy Lighthouse Global Network

British advertising group Cordiant Communications said it will buy Lighthouse Global Network Inc., a U.S.-based communications and marketing business, for about $421 million in shares. The acquisition, satisfied through the issue of 75 million new Cordiant shares worth $421 million, would create the world’s 10th-largest communications group. But Cordiant shares fell almost 9%, cutting the value of the shares to around $385 million and giving Lighthouse an enterprise value of about $550 million, including $100 million in debt and stock option obligations. Cordiant’s is the third big ad agency deal in three months. WPP Group staged a $4.7-billion takeover of U.S. rival Young & Rubicam in May and Publicis bought Saatchi & Saatchi for $1.92 billion last month. Lighthouse, owned by management and two Chicago-based private equity investors, GTCR Golder Rauner and Frontenac Co.--enjoyed 1999 revenue of $158.9 million, yielding adjusted earnings before interest, tax, depreciation and amortization of $37.3 million. Lighthouse, with 36 offices in six countries and about 1,100 employees, includes on its client list mobile-phone giant Vodafone AirTouch and Kraft Foods, as well as computer companies IBM and Microsoft.