Acquisition

Acquisition

Next Fifteen Communications Plc

13 July 2018

Next Fifteen Communications Group plc
(“Next 15” or the “Company”)

Acquisition of Technical Associates Group

Next 15, the digital communications group, is pleased to announce the acquisition of Technical Associates Group (“TAG”) through the purchase of the entire issued share capital of Technical Publicity Limited. TAG are a specialist technical content and digital marketing business focused on the industrial engineering sector with clients including National Instruments, HIMA and Atlas Copco. TAG services its clients from offices in the UK, Germany and Singapore. Following the acquisition, TAG will trade as a member of the Publitek group. The Managing Directors of TAG, Sylvia Laws and Ian Clay, will join the Publitek board.

The initial consideration for the acquisition is £2.2 million, which will be settled with £1.9 million of cash and the issue of 67,750 new ordinary shares in Next 15. Further deferred consideration of £0.6 million is payable in April 2020. Contingent consideration dependent on the combined EBIT performance of TAG and Publitek, an existing Next 15 business, is also payable in April 2020. The maximum total expected consideration of £3.6 million represents a 5x multiple on TAG’s average adjusted EBIT performance over the last 3 years ending 31 March 2018. The acquisition is expected to be earnings enhancing for Next 15 in the year to 31 January 2019.

Commenting on the rationale behind the acquisition, Publitek’s Founder and Chairman, Bob Jones, said, “By bringing TAG into the Publitek group, we now offer clients of both businesses greater geographic reach and broaden our expertise for clients in the industrial engineering sector. What’s more, the team brings valuable digital skills and experience, particularly in marketing automation.”

Sylvia Laws, Managing Director of TAG adds, “Everything about Next 15 and Publitek feels right - it is a win win for our clients and our people. Now, without compromising on our brand purpose, we have a truly global presence, stronger influence in the tech, engineering and electronics markets and even greater insight across our key markets.”

Application has been made to the London Stock Exchange for the new ordinary shares in Next 15 to be admitted to AIM and it is expected that admission will take place on 18 July 2018. The new ordinary shares will rank pari passu with the existing ordinary shares, including the right to receive all dividends declared, made or paid hereafter. Following the issue and allotment of the new ordinary shares, Next 15 will have 78,612,727 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 / Neil Coleman / Darren Vickers [phone]

View source version on businesswire.com: https://www.businesswire.com/news/home/20180712005899/en/