In a dramatic development for the auction industry, Sotheby’s announced on Monday that it had acquired Art Agency, Partners, a two-year old, New York-based art advisory company, for $50 million plus built-in performance fees that could elevate that number to $85 million over the next four years.
“AAP’s profitable business helps drive initiatives that are imperative for Sotheby’s growth,” said Tad Smith, Sotheby’s president and CEO, in a prepared statement. He predicted that the acquisition would “improv[e] our leadership position at the high end of the fine art market, [bolster] our private sales capability, [give] us new growth opportunities in advisory services, and reinforc[e] the client-first culture in all we do.”