10th Jun 2014 09:00
LONDON (Alliance News) - Communisis PLC said Tuesday it has acquired the entire share capital of The Communications Agency Limited in a deal worth GBP7.25 million, plus the amount of TCA's surplus cash of up to GBP750,000.
The personalised customer communication services provider said it has acquired the branding and marketing agency as it offers "considerable scope for growth and revenue synergies with the Group's existing client portfolio and the cross-selling of other marketing services in social media, video, digital development and content marketing."
The acquisition is expected to be earnings enhancing in its first full year of ownership, said Communisis.
Communisis has acquired TCA for GBP7.25 million plus the amount of TCA's surplus cash of up to GBP750,000. The consideration will be satisfied in cash of up to GBP6.55 million and 2,404,643 new ordinary shares in Communisis to the value of GBP1.45 million, said the company.
For the financial year to October 31, 2013, TCA generated adjusted EBITDA of GBP450,000 on turnover of GBP6.2 million, GBP4.0 million net of recharged costs. Gross assets at that date were GBP1.38 million.
TCA is based in London with 42 employees, all of whom are transferring to Communisis. The Chairman, Robert Prevezer, and Chief Executive, Adam Leigh, the principal vendors, are also joining the Group in senior executive roles.
Andy Blundell, Chief Executive of Communisis said TCA will "sit at the heart of Communisis' creative offering. The growth prospects are excellent."
Shares in Communisis were trading 1.73% higher at 58.75 pence per share Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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