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CAA has closed its acquisition of fellow mega Hollywood talent agency ICM Partners, the companies said Tuesday.

The deal is valued at $750 million, resulting in a pro-forma enterprise valuation of $5 billion for the enlarged agency. The closing comes nearly a year since the deal was announced in September 2021. The acquisition, the largest talent agency transaction since WME acquired IMG in 2014, was delayed due to increased scrutiny from the Department of Justice and Federal Trade Commission as M&A fervor rages in Hollywood.

The official closing of CAA’s acquisition of ICM marks a shift in the Hollywood agency landscape that reduces the Big Four agencies to the Big Three, with WME and UTA as CAA’s largest competitors. It is also resulting on layoffs for 105 ICM Partners employees, with 425 staffers expected to making the move over to CAA. In total, CAA will now have more than 3,200 employees operating in 25 countries.

The combination of CAA and ICM brings the latter’s TV literary department, publishing and music strength to CAA. Over the past year, ICM has also bolstered its operations in sports, where CAA already has a big footprint. ICM also adds to CAA’s work with broadcast TV news anchors and hosts.

“Today marks a new chapter in the history of our company, positioning us better than ever to deliver extraordinary opportunities for many of the world’s preeminent artists, athletes, thought leaders, brands, and organizations in entertainment, sports, and culture,” CAA co-chairmen Kevin Huvane, Bryan Lourd and Richard Lovett said in a statement announcing the close of the Tuesday. “We are thrilled to welcome our new ICM colleagues to CAA, and look forward to combining their expertise, relationships, and resources with those of our agents and executives around the world. Our diverse range of clients who entertain and inspire large global audiences have never been in more demand, nor have their opportunities been greater. With today’s addition of our new colleagues, the scope of possibilities for helping clients achieve their goals is limitless.”

ICM Partners’ leaders Chris Silbermann and Ted Chervin added: “Combining with the best-in-class agency to build an even greater representation company for our clients and our colleagues is the core strategic reason for this move. We couldn’t be more enthusiastic about our future together, and are energized by the sophisticated, forward-thinking representation we offer clients. This is the ideal next step for our companies.”

CAA and ICM were formed the same year, in 1975, amid another period of turmoil in the agency arena. International Creative Management was formed out of the merger of Creative Management Associates and International Famous Agency. CAA was launched by Mike Ovitz, Ron Meyer and a handful of other William Morris Agency reps who famously opted to plant their own flag.

ICM acquired the powerhouse lit agency Broder Kurland Chervin Silbermann in 2006 with financing from Rizvi Traverse Management. By 2012, Silbermann had wrested control of ICM after winning an internal management battle and a clutch of ICM leaders bought out Rizvi Traverse, turning it into a management-owned agency. In 2019, ICM Partners received an equity investment from Crestview Partners.

Though the CAA-ICM deal did not close until today, CAA has been preparing for the acquisition for months. In January, CAA announced plans to move its Los Angeles headquarters to a larger location in Century City as it prepared to absorb hundreds of new employees through its then-pending acquisition of ICM. The agency will leave its current spot on Constellation Boulevard and head across the street to the under-construction Century City Center tower in 2026.

Allen & Company LLC served as financial advisor for CAA, and Wachtell, Lipton, Rosen & Katz as legal advisor in the transaction. Lazard served as financial advisor for ICM, with Sheppard Mullin and Davis Polk & Wardwell LLP as legal advisors.

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