11th Nov 2014 08:53
LONDON (Alliance News) - Porta Communications PLC on Tuesday said it has struck a GBP6.2 million deal to buy reputation management consultancy PPS Group Ltd, sending shares in Porta higher in early trade.
Following the acquisition, the business will operate as Newgate PPS and will become the public affairs arm of Porta. The company's smaller public affairs arm within Newgate Communications will be integrated into the new business.
PPS generated pretax profit of GBP706,277 for the year to April 30, on fee income of GBP4.6 million.
The total consideration for the deal includes GBP2.9 million in cash and GBP850,000 in loan notes. The balance will be covered by the issue of 23.8 million shares in Porta at 10 pence per share.
"This acquisition is in line with Porta's strategy of building critical mass across the marketing communications mix. PPS is a very successful, professionally run company that will bring a new area of expertise to the group and is complementary to our existing specialist public affairs offering," Porta Chief Executive David Wright said.
Porta shares were up 5.7% to 7.40 pence on Tuesday morning, making it one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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