Investment in Sponge

29th Mar 2012 07:00

29 March 2012

St Ives plc - Investment in Sponge

St Ives plc ("St Ives" or "the Group") is pleased to announce that it has made an investment in Sponge Limited ("Sponge"), a leading provider of mobile marketing solutions.

The investment in Sponge represents a further step in St Ives' strategy to create a complementary range of digital and marketing services that will enable the Group to add value to existing and new clients.

Established in 2002, Sponge provides mobile marketing solutions and mobile services to a number of leading global brands including adidas, Coca Cola and McDonalds. The business employs 22 staff and is headquartered in central London. St Ives is investing in order to enhance the Group's ability to deliver marketing strategy and communications across a broad range of channels, whilst accelerating Sponge's expansion.

St Ives has agreed to invest £1.5 million in cash in the form of convertible loan stock (equivalent to a 24% equity stake on conversion) and will have the right of first refusal in the event of the sale of all or part of the remaining equity in the business. The business is currently owned by its co-founders.

Following the investment, Sponge will work closely with St Ives but will continue to be managed by the existing management team from its current premises.

Ends

For further information please contact:

St Ives plc 020 7928 8844

Patrick Martell, Chief Executive

Matt Armitage, Finance Director

MHP Communications 020 3128 8100

John Olsen / Ian Payne / Giles Robinson

XLON

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