27th Oct 2014 08:49
LONDON (Alliance News) - Chime Communications PLC on Monday said it has acquired US sports and entertainment marketing company SJX Partners LLC for USD8.5 million in cash and shares.
Chime said the acquisition is expected to be immediately earnings accretive. In 2013, SJX posted a pretax profit of USD1.9 million on revenue of USD4.4 million, Chime said.
The company will pay 70% of the initial USD8.5 million consideration in cash, with the other 30% covered by the issue of 593,647 Chime shares, meaning the shares are being issued at about 267 pence apiece. Chime shares were up 0.6% in early trade on Monday at 274.50 pence.
Chime said further earn-out consideration on the deal may become payable up to 2020 dependent on the profitability of SJX. The earn-out consideration is capped at USD19.5 million, it said.
The marketing company also said it has increased and extended its existing financing facility. It has replaced its GBP95 million September 2016 facility with a GBP130 million facilities, expiring in September 2019, which is split between The Royal Bank of Scotland Group PLC and HSBC Holdings PLC.
"We are delighted with the SJX acquisition which is in line with our stated strategy and expands our presence in the United States, the largest sports marketing marketplace in the world," said Chime Chief Executive Christopher Satterthwaite.
By Sam Unsted; [email protected]; @SamUAtAlliance
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