Ebiquity comfortably in line

20th May 2011 16:51

Media and marketing insights firm Ebiquity is to buy global reputational analysis agency, Echo Research.Ebiquity will pay an initial £3.5m for the privately owned firm, but the consideration could rise up to £10m, depending on the performance of the acquired 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.Ebiquity said the acquisition will materially enhance earnings in the first full financial year following completion once identified synergies have been realised.Echo's turnover for the year ended 31 March 2011 was £5.0m and the company generated an operating profit before exceptional items of £0.5m. Echo had net assets of £1.4m at 31 March 2011 and employs 45 people.To help pay for the acquisition, Ebiquity is to raise £2.6m (gross) through a placing of 2.85m shares with existing shareholders at a price of 90p each.The company has entered into an amended acquisition facility with Bank of Ireland with an increased term facility of £5.0m. This increased acquisition facility, along with the company's other existing debt facilities with Bank of Ireland, will be used initially to partially fund the Acquisition and other potential future acquisitions.In an update on current trading, Ebiquity said performance in the second half of the company's financial year has been strong, with a particularly good performance from the US. The company said results for the year to 30 April "will be comfortably in line with market expectations".---jh