Acquisition

Acquisition

Next Fifteen Communications Plc

Next Fifteen Communications Group plc

(“Next 15” or the “Company”)

Acquisition of Publitek Limited

Next 15, the digital communications group, is pleased to announce the acquisition of the entire issued share capital of Publitek Limited (“Publitek”), a specialist technical content marketing business that services customers in the global semiconductor and electronic component market.

Publitek was founded by its CEO, Bob Jones, who will remain in the business following its acquisition. The company builds content platforms, creates and optimises content, and manages on and offline communities on behalf of over forty companies, including ARM, Ericsson, Intel, Sony, Verbatim and Cadence. Publitek is based in the UK, and 36% of its revenues came from US-based clients in its 2015 financial year.

The initial consideration for the acquisition is approximately £6.2 million, of which approximately £5.7 million is to be satisfied in cash with the balance to be satisfied by the issue to the vendors of 228,704 new ordinary shares in Next 15. Further consideration may become payable based on the average profits of Publitek for the years ending 31 January 2018, 2019, 2020 and 2021. 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 31 December 2015, Publitek reported gross revenues of £5.9 million, adjusted profit before tax of £2.0 million and net assets of £3.1 million. Publitek is to be acquired debt-free.

Tim Dyson, CEO of Next 15, commented: “As the marketing industry becomes increasingly specialised and technology-driven, Next 15 is looking to find firms like Publitek that can drive these niche but powerful online communities. Publitek’s deep domain expertise in the semiconductor and component markets has enabled it to provide a unique way of reaching the CTOs, CIOs, specialist engineers and product managers who buy and use these technologies. As part of the Next 15 group, we believe we can accelerate Publitek’s already significant growth prospects.”

Bob Jones, CEO of Publitek, said: “Next 15’s global presence provides the platform we need to support our clients better and to accelerate our growth, particularly in the US and continental Europe. We share a common vision of how the digital revolution has impacted marketing communications and how truly integrated strategies can be harnessed to deliver better value for clients. We’re excited to be joining such a forward-thinking and successful international 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 16 March 2016. Following the issue and allotment of the new ordinary shares, the Company will have 70,919,197 ordinary shares in issue. No ordinary shares are held in treasury.

Enquiries:

Next Fifteen Communications Group plc

Tim Dyson, CEO [phone]

Investec Bank plc

Keith Anderson / Matt Lewis / Dominic Emery [phone]

View source version on businesswire.com: http://www.businesswire.com/news/home/20160310006546/en/