Communisis Spends GBP1.9 Million On Two Acquisitions For Design Unit
(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - Marketing services provider Communisis PLC Monday said it has acquired video and film production specialist Jacaranda Productions Ltd and digital creative agency Public Creative Ltd, for a total initial consideration of GBP1.9 million.
Communisis said it acquired the two businesses to support and build on its Design division, and hopes the acquisitions will present opportunities for revenue synergies with existing Communisis clients.
The company acquired video and film production specialist business Jacaranda Productions for an enterprise value of GBP1.5 million, on a cash-free, debt-free basis, plus surplus cash, which it said it expects to be minimal.
It said the acquisition will be paid for with GBP0.9 million in cash, and through the issue of 913,242 new shares in Communisis, to the value of GBP0.6 million. It said that further payments annually in cash, up to an aggregate amount of GBP0.5 million, may be necessary depending on the gross profit the business generates in the next three years.
For the year ended February 28 2013, Jacaranda Productions generated adjusted earnings before interest, taxes, depreciation and amortisation of GBP390,000 and revenues of GBP1.6 million.
Communisis also acquired Shoreditch-based digital creative agency Public Creative for an enterprise value of GBP0.35 million, on a cash free, debt free basis, plus surplus cash estimated at around GBP40,000.
Public Creative reported revenues of GBP600,000 for the year ended April 30, 2013, with earnings before interest ,taxes, depreciation and amortisation of GBP50,000.
Communisis shares were trading 2.7% higher at 66.00 pence Monday morning.
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