Business
Acquisition and Subscription
Acquisition and Subscription.
About this update from Ingenta Plc
[{"type":"text","content":"\n \nRNS Number : 5875F Ingenta PLC 29 July 2016 \n\n \n \n \n29th July 2016\n \n \n \nIngenta plc\n \n('Ingenta' or the 'Company')\n \nAcquisition of advertising software company, 5 fifteen Ltd\n \nShare subscription for up to £780,000\n \n \nIngenta has acquired 100% of the issued share capital of UK advertising software company, 5 fifteen Ltd, a leading supplier of digital advertising solutions to the magazine and newspaper industry (the \"Acquisition\").\n \nThe purchase will allow Ingenta to strengthen its product portfolio and strategically build on its existing plans to diversify its client base, extending its offering into the wider media industry as well as trade and academic publishers. In order to fund the additional working capital requirements resulting from the Acquisition and to provide additional working capital generally, the Company has received commitments for a direct subscription with certain institutional investors and directors of the Company (the \"Subscription\"). The Subscription will raise up to £780,000 before expenses through the issue of 600,000 new ordinary shares of 10 pence each at 130 pence per share. The Acquisition is not conditional on the Subscription.\n \nThe Acquisition\n \nEstablished in the UK in 1999, 5 fifteen is known for its web-based advertising platform, 'ad DEPOT', which allows media organisations to sell, manage and deliver print and digital advertising. The system has processed over £1 billion in advertising income and is used by major organisations such as Hearst Corporation, Trusted Media Brands (Reader's Digest), Springer Nature and Elsevier.\n \nDrawing on 5 fifteen's expertise and reputation and Ingenta's presence in the US, Europe and the Far East, where it has an established client base and sales network, this partnership will unlock the largely untapped potential of the ad DEPOT product.\n \nIngenta will pay up to £990,000 in cash for 100% of the share capital of 5 fifteen Ltd, £490,000 now and up to £500,000 as an earn-out based on revenue. Half of the earn out consideration will based on revenue targets for the year to 31 December 2016 and half based on revenue targets for the year to 31 December 2017 with the ability to earn more in 2017 if 2016 is below target and 2017 above t...