3rd Mar 2014 10:43
LONDON (Alliance News) - St Ives PLC Monday said it has bought digital marketing agency Realise Holdings Ltd for at least GBP21.7 million in cash and shares, a deal that it expects to boost its digital offering and its earnings.
The company will pay about GBP18.4 million in cash and 1.7 million St Ives shares for Realise on a cash- and debt-free basis. However, it will also pay up to GBP18.3 million more depending on Realise's financial performance during this financial year and next. The latter consideration would be settled 85% in cash and 15% in St Ives shares.
Realise was established in 1995 and employs about 96 people in its offices in Edinburgh and central London. Its customers are in the entertainment and finance sectors, among others. In the year to end-September 2012, it made earnings before interest, tax, depreciation and amortisation of GBP1.7 million on revenues of GBP9.7 million. Its unaudited accounts for the year to end-September 2013 show Ebitda of GBP2.7 million before one-off items.
"With the acquisition of Realise, we are adding substantial depth to our digital offering and further enhancing the range of marketing services we can provide for our existing and prospective clients," St Ives Chief Executive Patrick Martell said in a statement.
"The acquisition will be earnings enhancing in the current financial year," St Ives said.
St Ives shares were up 0.2% at 192.813 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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