13th Jul 2007 07:00
Huntsworth PLC13 July 2007 Huntsworth plc Acquisition of AXIS Healthcare Communications LLC Huntsworth PLC ("Huntsworth"), the international public relations group,announces today that it has acquired a one hundred percent stake in AXISHealthcare Communications LLC and its subsidiaries (together "AXIS"), a leadinghealthcare communications company operating in the USA. This acquisition further extends the reach of Huntsworth Health into the USA,the largest healthcare market in the world, where many of the world's majorpharmaceutical companies are headquartered. AXIS will broaden HuntsworthHealth's US base following the acquisition of Dorland Global Corporation inMarch 2007. While both businesses operate in the healthcare communicationsarena, their spheres of expertise are different - AXIS provides services toclinical, medical, marketing and sales training departments of pharmaceutical,biotech and medical device companies, while Dorland works principally with themarketing departments. In addition, the client base for both companies isdiverse, covering big pharmaceutical companies, emerging companies and devicemanufacturers. As a result there is significant potential to offer additionalservices to the existing client base of both companies. AXIS also includes thenew healthcare marketing and advertising agency 'Evoke', which specialises inthe growing market for digital communications. Following the acquisition, Huntsworth Health will be able to offer integratedservices in the healthcare sector having a global network and critical mass ofmore than 500 employees worldwide. Huntsworth Health will be well positioned asa major player in the global and US healthcare communications marketplaces. AXIS has been acquired from Neil Matheson and six other shareholders who aremembers of the senior management team of the company. Neil Matheson willcontinue to lead the business following the acquisition. He will report toDavid Rowley, Chief Executive of Huntsworth Health. Initial consideration is US$18.4 million paid in cash. Deferred considerationmay be payable, with an interim cash payment based on profits for the six monthsto 31 December 2007 and a final cash payment based on profits for the four yearsto 31 December 2010. The maximum total consideration that could be payable isno more than US$55 million. For the year ended 31 December 2006, AXIS had consolidated profit before tax ofUS$2,627,000. The consolidated gross assets at 31 December 2006 wereUS$14,411,000. Lord Chadlington, Chief Executive of Huntsworth, said: "We are delighted to announce the acquisition of AXIS, which is anotherimportant strategic step towards achieving a leadership position in the global,integrated healthcare communications business. Together, AXIS and Dorlandprovide the foundation for a powerhouse business in the US which, when teamedwith our European presence, strengthens our global healthcare communicationsnetwork. The services provided by AXIS are complementary to the marketresearch, advertising, and public relations services that we already offerthrough Huntsworth Health UK and the recently acquired Dorland Global in the US." Neil Matheson, Chief Executive Officer of AXIS, said: "In order to continue to realise our vision of being the world's leadingintegrated healthcare communications company, we were looking for a partner thatwould enable us to expand our service offering while also expanding our networkon a global basis. I am thrilled that we have found the perfect partner inHuntsworth and I am very excited about the range of integrated services we cannow offer our clients through the Huntsworth global network." For further information, please contact: Huntsworth plcLord Chadlington, Chief Executive Tel: +44 20 7408 2232Sally Withey, Finance Director Tel: + 44 7899 961 667 Huntsworth HealthDavid Rowley, Chief Executive Tel +44 1628 483196 AXIS Healthcare Communications LLCNeil Matheson, Chief Executive Tel: +1 215 550 8302 Citigate Dewe Rogerson Tel: +44 20 7638 9571Simon Rigby / Brett Jacobs / George Cazenove Notes to Editors: AXIS Healthcare Communications LLC AXIS was founded in 1999 by its principal shareholder Neil Matheson. AXISoffers a comprehensive range of healthcare communications services through itsgroup of agencies that includes Curatio CME Institute, an accredited provider ofcontinuing medical education; ApotheCom Associates and Helix MedicalCommunications, medical communications agencies offering strategically-drivenscience-based communications and educational programs; Evoke HealthcareInteractions, a full service interactive agency, and AXIOM Professional HealthLearning, a sales training and professional development company. Major clientsinclude Pfizer, Genentech, Merck, Schering-Plough, AstraZeneca, Biogen IDEC,Janssen, Cephalon and Roche. Headquartered in Philadelphia, AXIS employs 220 people in seven offices locatedin Boston, New York, Bridgewater, Philadelphia, San Diego and San Francisco. Prior to setting up AXIS in 1999, Neil Matheson had sixteen years experience inthe industry. He spent the first seven years in New Zealand in various rolesbefore transferring to the United States with Adis to become Executive VicePresident. In 1994 he became a founding partner of OCC North America, Inc., afull service medical communications agency. Huntsworth Health Huntsworth Health is the healthcare communications division of Huntsworth plc.The UK operation employs over 100 staff and, through its expertise inadvertising, medical communications, PR and research, is the largest integratedagency in the UK. Both AXIS and the recently acquired Dorland Global fall underthe Huntsworth Health umbrella. In combination with its Huntsworth partners Trimedia and Mmd, Huntsworth Healthnow has a major presence across Europe and North America, and is an increasingforce in the global healthcare communications market, having relationships with34 of the top 40 pharmaceutical and biotech companies. Recent wins includeNovartis, Roche, Sanofi-aventis and Baxter, as well as a major global assignmentfrom Novartis Vaccines. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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