Next Fifteen Comm Acquisition
July 11 2017 - 2:00AM
UK Regulatory
TIDMNFC
Next Fifteen Communications Group plc
("Next 15" or the "Company")
Acquisition of Velocity Partners Limited
Next 15, the digital communications group, is pleased to
announce the acquisition of the entire issued share capital of
Velocity Partners Limited ("Velocity"), a B2B digital agency with a
focus on technology clients. Velocity was founded by Doug Kessler
and Stan Woods in 2000, who will remain in the business following
its acquisition. Clients include multi-national technology groups,
such as Sprint, Xerox and Informatica. Velocity is based in the UK,
however, 70% of its revenues came from US-based clients in
financial year ended 30 April 2017.
The initial consideration for the acquisition is approximately
GBP5.9 million, of which approximately GBP4.9 million is to be
satisfied in cash with the balance to be satisfied by the issue to
the vendors of 251,966 new ordinary shares in Next 15. Further
consideration may become payable based on the average profits of
Velocity for the years ending 31 April 2018, 31 January 2019, 31
January 2020, 31 January 2021 and 31 January 2022. Any deferred
consideration that becomes payable may be satisfied by cash or up
to 25 per cent in new ordinary shares, at the option of Next 15.
The acquisition is expected to be earnings-enhancing for the Group
in the current financial year. For the year ended 30 April 2017,
Velocity reported net revenues of GBP5.2 million, adjusted profit
before tax of GBP1.35 million and net assets of GBP2.1 million.
Velocity is to be acquired debt-free.
Tim Dyson, CEO of Next 15, commented: "Data-driven content
marketing is the fastest growing part of the marketing mix right
now. This is a key area of investment for us going forward.
Velocity has built an impressive business with a strong B2B focus
that means it will placed to achieve its ambitions in the US and UK
markets. At its core is a strong management team that shares our
vision and values. We are very excited to work with them to help
them achieve their plans."
Stan Woods, founder of Velocity, said: "Velocity has always been
fiercely independent. But as soon as we met the team at Next 15, we
could see that this was the right home for us. We're thrilled to be
a part of such a strong group."
Application has been made to the London Stock Exchange for the
new ordinary shares to be admitted to AIM and it is expected that
admission will take place on 13 July 2017. Following the issue and
allotment of the new ordinary shares, the Company will have
73,868,144 ordinary shares in issue. No ordinary shares are held in
treasury.
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation.
Enquiries:
Next Fifteen Communications Group plc
Tim Dyson, CEO +1 415 350 2801
Investec Bank plc
Keith Anderson / Matt Lewis / Dominic Emery +44 20 7597 4000
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170710006451/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
July 11, 2017 02:00 ET (06:00 GMT)
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