23rd Dec 2020 10:05
(Alliance News) - Shares rose in SEC Newgate SpA on Wednesday after it announced the acquisition of a 60% interest in German consultancy Orca Affairs GmbH for a maximum of EUR3.5 million
The public relations firm was 12% higher at 46.60 pence on Wednesday in London.
SEC Newgate will acquire the interest in four tranches of 15% per year until 2024.
The Milan-based company will make an initial payment of EUR700,000 on April 1 next year and will make three deferred cash payments in 2022, 2023 and 2024 through an earn-out mechanism linked to Orca's earnings before interest, tax, depreciation and amortisation.
As a result, the total consideration for the acquisition ranges from EUR2.2 million to EUR3.5 million.
In 2019, Orca's pretax profit was EUR2.2 million, on revenue of EUR10.5 million.
The acquisition is expected to be earnings enhancing in 2021, and Orca being part of SEC Newgate will help it build its business at a local, regional, national and international level.
"I warmly welcome on board Michael and the whole Orca Affairs' team. I am sure they will find that this is the right environment for them to further develop and grow their business in a culture with an obsession for excellence, in making a real difference, and always with an entrepreneurial spirit. Today's acquisition consolidates and strengthens our position in Continental Europe's largest market and matches with our size, ambitions and potential," said Chief Executive Officer Fiorenzo Tagliabue.
By Dayo Laniyan; [email protected]
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