NEXT FIFTEEN COMM: Acquisition of Shopper Media Group Ltd
April 09 2021 - 01:00AM
UK Regulatory
TIDMNFC
Next Fifteen Communications Group plc
Acquisition of Shopper Media Group Ltd
Next Fifteen Communications Group plc ("Next 15" or the
"Company") is pleased to announce the acquisition of the entire
issued share capital of data-led business Shopper Media Group Ltd
and its subsidiaries, Capture Marketing Ltd, Lobster Agency Ltd and
Threefold Agency Ltd ("Shopper Media Group" or "SMG").
Shopper Media Group specialises in commerce marketing
activation, connecting retailers and brands with shoppers at the
point of purchase both online and in-store. Clients include The
Co-op Group, Deliveroo, The Very Group, Pladis and McCain Foods.
The business was founded in 2008 by Joel Hopwood and Matthew Lee,
who were previously with Dunnhumby and who will continue in their
roles following the acquisition. Sam Knights, previously with
Proctor and Gamble, will continue to run the business as CEO and
SMG will continue to operate as an independent brand within the
Next 15 Group. The acquisition will help Next 15 deliver its
strategy of using data to help its customers determine the optimum
marketing spend.
The initial consideration for the acquisition is approximately
GBP15.7 million, of which approximately GBP11.8 million is to be
satisfied in cash with the balance to be satisfied by the issue of
569,181 new ordinary shares in Next 15. A Top-up payment is
anticipated to be payable around February 2022 based on the EBITDA
performance of SMG for the year ending 30 September 2021.
Further deferred consideration is anticipated to be payable
around June 2023 and June 2025 based on the EBITDA performance of
SMG in the 2-year periods ending 31 January 2023 and 31 January
2025 respectively. The acquisition is expected to be earnings
accretive for Next 15 in the current financial year.
For the year ended 30 September 2020, SMG reported net revenues
of GBP8.9 million and adjusted profit before tax of GBP3.5
million.
Tim Dyson, CEO of Next 15, commented: "Next 15 believes that the
future of marketing is tied to the growth agenda of the
organisation. As such we need to offer our customers a collection
of products and services that will enable them to drive growth. As
the world of retail evolves and looks for new ways to reach
customers it needs strategic partners that have the technologies,
data science and skills to drive the necessary programmes. Shopper
Media Group has developed an innovative set of predictive,
data-driven tools that enable customers to optimize their spend to
drive the strongest levels of growth. We are very excited to have
them as a part of the family and see a range of opportunities for
them to collaborate with other parts of the Group."
Sam Knights, CEO of Shopper Media Group, commented: "With the
growth of social commerce, on-demand online marketplaces and
E-commerce platforms, only accelerated as a result of the impact of
Covid, commerce activation is now becoming central to all marketing
and brand planning. SMG has been leading the way in connected
commerce marketing for the past 12 years, building data-driven
tools for brands and retailers to unlock real value at the point of
consideration and purchase. We are very excited about all the
opportunities that becoming part of the Next 15 family will bring,
not least allowing us to further develop our service for our
current clients whilst expanding SMG's successful model
globally."
Application will be made to the London Stock Exchange for the
new ordinary shares to be admitted to AIM and it is expected that
admission will take place on 15 April 2021. 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, the Company will have 91,769,543 ordinary shares in issue.
No ordinary shares are held in treasury.
Enquiries:
Next Fifteen Communications Group plc
Tim Dyson, CEO +1 415 350 2801
Peter Harris, CFO +44 (0)20 7908 6444
Numis
Mark Lander, Hugo Rubinstein +44 (0)20 7260 1000
Berenberg
Ben Wright, Mark Whitmore, Arnav Kapoor +44 (0)20 3207 7800
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210408005990/en/
CONTACT:
Next Fifteen Communications Plc
SOURCE: Next Fifteen Comm
Copyright Business Wire 2021
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