23rd Dec 2009 08:16
FOR IMMEDIATE RELEASE 23 December 2009
RAM INVESTMENT GROUP PLC
ACQUISITION, CONTRACT AWARDS and REBRANDING
RAM Investment Group plc ("RAM" or the "Company"), the investor in Digital out of Home ('DOOH') media, communications and Intellectual Property, announces the acquisition of Estates Media Partners Limited ("EMP"), a supplier of digital media and advertising contracted to shopping malls in six major City locations in the UK.
The Company has formed a new wholly owned subsidiary called RAM Vision Limited ("RAM Vision") to operate its DOOH media activities, into which EMP will be consolidated. Together they will trade under the brand name of RAM Vision and be managed by executives of RAM, TrainFX Limited ("TFX"), and EMP.
RAM has entered into a share purchase agreement with Frogmore Property Company Limited under which RAM will pay a total consideration of £325,000 through the issue of 3,333,334 new RAM ordinary shares of 1p each at 9.75p per share to acquire the entire issued share capital of EMP.
As previously announced, RAM's investee company, TFX, recently acquired the business and assets of ASG Media PLC ("AMG"). These assets are currently being managed and operated by RAM Vision.
RAM Vision has just been awarded a three year contract with the Oracle shopping centre in Reading, Berkshire, one of the flagship sites of the Hammerson Property Group, while EMP has secured contracts in Bristol, Edinburgh, Liverpool and London.
The Company is also pleased to announce that RAM Vision has been awarded a six figure contract with a Fortune 500 International Consumer Finance Company for the provision of advertising on its network.
RAM Chairman Tim Baldwin comments: "These acquisitions have synergies with TFX, which has previously supplied software and technical support for other DOOH media companies. RAM Vision will benefit from the technological expertise and knowhow of TFX while TFX will benefit from the skills and knowledge that the RAM Vision executives have of the DOOH market.
"RAM Vision has the potential to become one of the largest network operators of DOOH media in the UK. We are delighted to have developed a substantial foothold in this growth industry through these acquisitions which has been achieved without significant cash investment.
"The DOOH market is undergoing big changes. The first adopters of DOOH media contracted with partners on optimistic terms that ultimately proved to be non-commercial. RAM has acquired these assets for a fraction of the cost of their original investment and will now contract with partners on realistic terms that are commercially feasible and profitable for all concerned parties.
"Moreover all four major UK outdoor advertising contractors are now committed to a digital format delivery. While traditional bastions of advertising remain in decline, DOOH is still in growth. With our management's understanding of the needs of advertisers, mall operators and network operators, we are well set to profit from this timely opportunity.
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"In 2010 both TrainFX and RAM Vision will become revenue-generating, which is an encouraging outlook."
For further information:
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RAM Investment Group plc |
www.raminvestmentgroup.co.uk |
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Tim Baldwin, Executive Chairman |
Tel: 0207 518 4300 |
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Sandy Jamieson Libertas Capital Corporate Finance Limited |
Tel: 0207 569 9650 |
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Monisha Varadan, Rivington Street Corporate Finance Limited |
Tel: 0207 562 3389 |
Related Shares:
RAM.L