17th Mar 2015 08:04
LONDON (Alliance News) - Marketing services company St Ives PLC on Tuesday said it has struck a deal to buy Solstice Consulting LLC for an initial GBP24.7 million in cash and shares.
St Ives will pay a total of USD24.7 million for the Chicago-based digital consultancy, comprising GBP20 million in cash and approximately 2.6 million shares in St Ives for the remaining GBP4.7 million. That would value those shares at 180.76 pence per share, slightly above St Ives' closing price on Monday of 179.5 pence.
A further GBP25.3 million may be payable, split between 80% in cash and 20% in St Ives shares, dependent on the profit performance of Solstice in 2015, 2016 and 2017.
St Ives said the acquisition will be earnings accretive in the current financial year on an underlying basis. Solstice generated adjusted earnings before interest, tax, depreciation and amortisation of GPB2.7 million in 2014 on revenue of GBP16.5 million, St Ives said.
Solstice is a digital consultancy specialising in mobile-first digital product design and engineering services, St Ives said. It was established in 2001 and trades under the name Solstice Mobile. The business employs approximately 200 staff across three offices in Chicago, New York and Buenos Aires.
"This acquisition further strengthens St Ives' reputation and capabilities in digital, and significantly extends these into mobile. Strategically, the deal supports the growth of the Group's marketing services division, while expanding our presence and capabilities in the Americas," said St Ives Chief Executive Matt Armitage.
By Sam Unsted; [email protected]; @SamUAtAlliance
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