Communisis acquires communications agency

10th Jun 2014 08:16

In a deal worth £7.25m, personalised communication services provider Communisis has acquired The Communications Agency (TCA), which specialises in brand response and customer relationship marketing. Communisis said the TCA's experience was "central" to the development of its own integrated and differentiated agency model. It also sees "considerable scope for growth and revenue synergies" as a result of the transaction, specifically with its existing client portfolio and the cross-selling of other marketing services in social media, video, digital development and content marketing.All 42 of TCA's London-based employees will be transferring with the business. In addition to the £7.25m consideration, the group will also acquire TCA's surplus cash of up to £0.75m, which together will be satisfied by a cash payment of up to £6.55m and the issue of 2.4m shares in Communisis to the value of £1.45m. Communisis Chief Executive Andy Blundell said: "TCA is a long-established, award-winning and well-respected agency that brings an impressive range of new capabilities and experience to the group's Design segment. It will sit at the heart of Communisis' creative offering. The growth prospects are excellent."The acquisition is expected to be earnings enhancing in its first full year of ownership.The share price rose 1.3% to 58.50p by 08:36 on Tuesday.NR