25th Oct 2013 06:41
LONDON (Alliance News) - Chime Communications PLC Friday said it will buy motorsports marketing firm JMI for about GBP43.7 million and will launch a GBP25.6 million share placing to help fund the deal.
The communications & sports marketing company who recently appointed Sebastian Coe as chairman of its sport and entertainment division, said the deal will give it a big presence in motorsports and launch it into the US market, as well as reducing revenue volatility because JMI has multi-year contracts and strong revenue visibility.
JMI focuses on motorsports, primarily Formula 1, NASCAR and IndyCar, providing long-term sponsorship management and services including large-scale hospitality events, rights sales, and digital and experiential marketing initiatives.
Chime said it will place 8.5 million shares at 300 pence each to help fund the deal.
Zakary Brown, the founder and chief executive of JMI, has relocated to London and will sit on the boards of both JMI and a newly formed Chime subsidiary called CSM Motorsport Ltd.
"I am delighted to be joining the Chime group. As part of Chime we can sell other products to our existing clients and I look forward to working with Lord Coe and the entire Chime team across all areas of the sports marketing business," Brown said in a statement.
"Chime formed its sports and entertainment division in 2007 and since then, the business has grown considerably, building profits to GBP15.8 million in 2012. This acquisition will give us a strong foothold in the US, one of the largest sports marketing markets in the world, and will accelerate Chime's strategy of becoming a global leader in sports marketing," Chime Chief Executive Christopher Satterthwaite said in a statement.
By Steve McGrath; [email protected]; @SteveMcGrath1
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