Acquisition

RNS Number : 3123B

St. Ives PLC

03 March 2014

 



3 March 2014  

St Ives plc - Acquisition of Realise Holdings Limited

St Ives plc ("St Ives" or the "Group") is pleased to announce that it has today acquired Realise Holdings Limited ("Realise"), a digital marketing agency.

The acquisition of Realise is a continuation of the Group's strategy to create a complementary range of digital and marketing services that will enable St Ives to add further value to its existing and new clients.

Established in 1995, Realise employs approximately 96 staff, with offices in Edinburgh and central London.  Realise has a long standing and well-known client base, across a range of sectors, that includes entertainment and finance, amongst others.

In the financial year ended 30 September 2012, Realise generated EBITDA* of £1.7 million on revenue of £9.7 million; gross assets were £6.4 million. Unaudited accounts for Realise for the financial year ended 30 September 2013 show EBITDA* of £2.7 million (*before items of a one-off nature).

St Ives has agreed to acquire Realise, on a cash and debt free basis, for £21.7million, to be satisfied by approximately £18.4 million in cash and approximately 1.7 million St Ives shares. Further consideration of up to £18.3 million may be payable (to be satisfied 85% in cash and 15% in shares) dependent on incremental financial performance for the years ending 30 September 2014, and 2015.

Realise will operate as a subsidiary of St Ives and will continue to be managed from its current locations by its existing management team, which includes Tony Murphy and Andy Lamond, the vendors.

The acquisition will be earnings enhancing in the current financial year.

Patrick Martell, Chief Executive of St Ives, said:

"With the acquisition of Realise, we are adding substantial depth to our digital offering and further enhancing the range of marketing services we can provide for our existing and prospective clients. Realise complements our integrated offering in the market - a combination of insight led innovation and trusted execution across digital and physical media.  I am delighted to welcome the Realise team to the Group and look forward to supporting their growth plans."

Commenting on the acquisition, Realise's CEO Tony Murphy, said:

"Realise already has a strong reputation as one of the most respected digital marketing agencies in the UK. With the support of St Ives Group, we can continue to grow both in the UK and internationally by being part of a larger group whilst still retaining our own identity and culture as an independently managed specialist agency."

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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 / Giles Robinson / Gina Bell

 

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