TIDMIME
RNS Number : 1380J
Immedia Group PLC
07 September 2016
7 September 2016
Immedia Group Plc
("Immedia" or the "Group")
Acquisition of the business and certain assets of AVC Media
Enterprises Limited
("AVC Media")
Immedia (AIM: IME), a supplier of digital audio content
solutions for leading brands and global businesses, announces that
it has acquired the business and certain assets comprising AVC
Media (the "AVC Business"), based in Aberdeen, from the
Administrators of AVC Media Enterprises Limited and AVCME Holdings
Limited (together the "AVC Companies") for a cash consideration of
GBP200,000, payable in full at completion.
Established in 1984, the AVC Business is a media and
communications business and digital technology specialist. The AVC
Business encompasses a range of services, which the Board of
Immedia consider are highly complementary to Immedia's activities;
these include audio visual solutions, video conferencing, event
production/management, video and 3D animation, web and graphic
design and App development. The AVC Companies work across many
sectors and are particularly well known in oil & gas, football
and tourism. Its past and current clients include leading brands
and global businesses, such as FA, FIFA, Shell, BP, Aker, SKY and
BT Sport.
The revenues of the AVC Business have declined rapidly over the
last 18 months, as prevailing low oil prices caused a number of oil
exploration and services clients to reduce significantly their
spend. This has impacted the AVC Business's trading performance
significantly, since AVC Media's last audited accounts for the year
ended 31 March 2015, which showed revenue of GBP5.9m, profit before
tax of GBP0.09m and net assets of GBP0.08m. This decline resulted
in the AVC Companies being placed in Administration on 6 September
2016.
The Board of Immedia considers that the AVC Business can be
returned to profitability by implementing certain identified cost
savings, synergies and cost sharing with Immedia and other measures
to be implemented post completion of the acquisition.
As of today the acquired business will be renamed AVC Immedia,
and will operate as a division of Immedia Broadcast Ltd a wholly
owned subsidiary of Immedia Group plc.
Bruno Brookes, Chief Executive of Immedia, said:
"We have been aware of the AVC Media business for many years and
believed that, should an acquisition opportunity arise, the
business would be an excellent fit with Immedia, allowing us to
enhance and broaden our client services. AVC Media has an
award-winning, specialist offering and a very experienced team.
Unfortunately market conditions severely affected the business, but
this has enabled us to acquire AVC Media at a price which we
consider to be advantageous.
"The acquisition of AVC Media strengthens Immedia's multi-media
content offering for clients in the Group's primary target sectors
of retail, workforce, sport and education. AVC has a strong client
list and we believe that both businesses will benefit from working
closely together, generating excellent access and cross-selling
opportunities and providing a wider range of integrated digital
services and solutions.
"In my Chief Executive's report in April 2016, I said that we
have been extremely encouraged by an unprecedented number of strong
and relevant opportunities from exciting businesses who want to
work with Immedia. This continues to be the case and we believe
that the acquisition of AVC Media will both strengthen and enhance
Immedia's offering and ultimate appeal to clients.
"I would like to take this opportunity to welcome the extended
team in Aberdeen to the Immedia family. There is no doubt that,
together, we will develop an even more exciting creative media
business."
This announcement contains information which, prior to its
disclosure, was inside information for the purposes of the Market
Abuse Regulation.
Ends
For further information please contact:
Immedia Group Plc Tel: +44 (0) 1635
Bruno Brookes - Chief Executive 556200
Officer
SPARK Advisory Partners Tel: +44 (0) 203 368
Limited (NOMAD) 3550
Mark Brady/Neil Baldwin
SI Capital Ltd (Broker) Tel: +44 (0) 1483
Nick Emerson/Andy Thacker 413500
Hudson Sandler Tel: +44 (0) 207 796
Catriona Valentine 4133
About Immedia Group Plc - www.immediaplc.com
Immedia Group Plc supplies digital audio content solutions,
delivered via a its scalable Dreamstream streaming platform which
enables businesses to stream bespoke digital radio channels to
internal and external audiences. Each bespoke channel includes
interactive functionality and powerful data analytics tools which
can be used to improve and fine-tune content to help increase
audience engagement.
About AVC Immedia - www.avcimmedia.com
AVC Immedia is a long established media and communications
company based in Aberdeen, Scotland. It is well known across
Scotland for its solution-based approach to client projects. Award
winning across a number of service offerings, AVC Immedia(1)s
foundations lie in its ability to work broadly across, in
particular, the Energy and Sports sectors predominantly in oil
& gas, football and tourism. Past and current clients include
the FA, FIFA, Shell, BP, Aker, SKY and BT Sport.
AVC Immedia is expert in digital technology supplying structured
solutions, delivered to global businesses who want to invest in
communications. Content creation is at the heart of the business
with skill sets and solutions offered in Video, 3D & 4D
animation for both top side and subsea, digital media solutions in
app and web development, Audio Visual supply and installation,
advertising planning and design.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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