28th Mar 2014 11:14
LONDON (Alliance News) - Porta Communications PLC Friday said it has bought two businesses from WSM Communications Group Ltd for GBP1.1 million in shares, boosting its digital capabilities.
In a statement the marketing and communications company said it will pay for the businesses by issuing 7.5 million shares at 14.075 pence a share, or about GBP1.1 million. Over 5.7 million of the shares are subject to a 12 month lock-in agreement and a further 12 month orderly market agreement.
"The two businesses incorporate a digital team of 12 specialists and seven print management and design specialists, providing between them full studio design and art-working capabilities and a full digital design and production unit, servicing a range of blue-chip clients," Porta said in a statement.
The two units made about GBP1.3 million of fee income and small profit in the 11 months to February of this year, it said, adding that WSM will continue to work closely with the units and is committed to placing digital, design and print activation work where possible to the businesses.
"Through our advertising agency 21:12 we are already working with the digital team on a number of client projects and are witnessing how their digital capabilities are significantly enhancing our ability to offer existing and new clients digital solutions to their wide ranging communications needs," Porta Chief Executive David Wright said in a statement.
"We are also very excited to welcome the highly successful design and print team who I am sure will continue to thrive within the Porta network and client base," he added.
Porta Communications shares were up 4.5% at 14.5 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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