Business
Acquisition and Placing
Acquisition and Placing.
About this update from Ebiquity Plc
[{"type":"text","content":"\n \nRNS Number : 9849G Ebiquity PLC 20 May 2011 \n \n\n20 May 2011\n \nEbiquity plc \n \nAcquisition of Echo Research\n \nPlacing to raise £2.6 million\n \n \nEbiquity plc (\"Ebiquity\" or the \"Company\") is pleased to announce the acquisition of the entire issued share capital of TCRG Holdings Limited, the holding company of Echo Research (\"Echo\") (the \"Acquisition\"). Echo is being acquired for initial consideration of £3.5 million with a maximum aggregate consideration of up to £10.0 million, conditional on the business achieving certain demanding growth targets over the next two years. Echo has been acquired from the shareholders of the Company, the ultimate majority shareholder of which was Sandra Macleod.\n \nEcho is a leading global reputation analysis, media measurement and stakeholder research specialist with offices in London, New York, Paris and Singapore. Sandra Macleod, Echo Research's founder, will remain as Chief Executive of the Echo business. Echo's business focuses on brand reputation and stakeholder insights, as well as analysis of non-paid media, including social media. Echo's clients include over 60 global blue chip companies.\n \nThe acquisition of Echo allows Ebiquity to offer its existing clients industry leading analysis and advice that will compliment its current analytics and insight offerings and deliver a comprehensive, global and in depth understanding of the evolving media landscape. \"Non-paid\", \"earned\" and, in particular, social media, are playing an increasingly vital role in how brands, businesses and management teams are perceived. The lines between paid and non-paid media are also rapidly blurring as brand owners exploit digital channels in ever more inventive ways to influence consumer perceptions, often in support of more traditional paid media activity. \n \nThe Acquisition will be materially earnings enhancing in the first full financial year following completion and the realisation of identified synergies.\n \nEcho's turnover for the year ended 31 March 2011 was £5.0m and generated an operating profit before highlighted items of £0.5m. Echo had net assets of £1.4m at 31 March 2011 and employs 45 people.\n \nMichael Greenlees, Chief Executive Officer of Ebiquity:\n \n\"The Directors believe the acquisition o...