Acquisitions

28 April 2014

Communisis plc

("Communisis" or "the Group")

Acquisitions of Jacaranda Productions Limited and Public Creative Limited

- Acquisitions add video, film and digital creative capabilities to support the growth strategy of the Group's Design segment -

Leading provider of personalised customer communication services, Communisis plc (LSE: CMS), announces that it has acquired the entire share capital of both Jacaranda Productions Limited ("Jacaranda") and Public Creative Limited ("Public Creative") (together "the Acquisitions").

Strategic Rationale

The Acquisitions add specific skills and expertise which support the Group's strategy to build a comprehensive range of integrated services in its Design segment and present opportunities for revenue synergies with existing Communisis clients.

Jacaranda is a video and film production specialist, creating, managing and measuring the effectiveness of video content for global brands. It is based in London with a team of six people. For over 15 years Jacaranda has been voted in the top ten independent production companies in Televisual's annual 'Corporate Top 50' awards and has won over 250 creative awards including The Digital Impact Awards, Cannes Corporate Media and TV Awards and New York Film and TV Awards.

Public Creative creates and drives brand awareness with digital media using web and mobile applications to build loyalty and encourage customer advocacy. It is based in London with a team of eight people.

Terms of the Acquisitions

Jacaranda

Communisis has acquired Jacaranda for an enterprise value (on a cash free, debt free basis) of £1.5m plus surplus cash, which is estimated to be minimal. The consideration will be satisfied in cash of £0.9m and through the issue of 913,242 new ordinary shares in Communisis to the value of £0.6m. Further consideration may be payable annually in cash up to an aggregate amount of £0.5m dependent on the gross profit generated in the three years after the acquisition.

For the financial year ended 28 February 2013, Jacaranda generated adjusted EBITDA (on a normalised basis before non-recurring items) of £0.39m on turnover of £1.6m.

Public Creative

Communisis has acquired Public Creative for an enterprise value (on a cash free, debt free basis) of £0.35m in cash plus surplus cash, estimated at £0.04m.

For the financial year ended 30 April 2013, Public Creative generated adjusted EBITDA (on a normalised basis before non-recurring items) of £0.05m on turnover from continuing activities of £0.6m.

Commenting on the Acquisitions Andy Blundell, Communisis Chief Executive, said:

"Jacaranda and Public Creative bring important new skills to Communisis, in line with our strategy, as the Group continues to build its integrated service proposition. There is growing demand from clients for engaging content, especially for video and film across all digital channels, and these Acquisitions complement and enhance our existing capabilities.

We are delighted that these talented and committed teams have decided to join Communisis and look forward to working with them to offer our clients a broader range of creative services."

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About Communisis

Communisis is the leading provider of personalised customer communication services that specialises in helping clients communicate with their customers more effectively and more profitably in fast-changing markets.

Communisis has a reputation for production excellence and innovation and is trusted by many leading, consumer-facing brands to design, produce and deploy multi-channel personalised customer communications accurately, securely, reliably and at scale.