Aegis Group, the FTSE 250 media and digital communications group, as signed a definitive agreement to acquire Beijing Catch Stone Advertising and the business of Shanghai Catch Stone Culture Media, an established full service digital media and marketing agency in China.
The purchase of the two, known collectiely as Catch Stone, is being made for an initial consideration of RMB 550m (£55.2m).
Catch Stone, an established digital agency in China, offers digital media planning and buying as well as a range of digital marketing services in areas including creative origination and social media. It is a leading media buying agency operating across China with a particular specialism in the automotive and financial services sectors.
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Aegis said: "With Catch Stone, Aegis Media will have a strengthened position in digital media planning and buying in China, one of the world's fastest growing advertising segments.
"The acquisition is in line with Aegis's strategy of targeting acquisitions with a specific focus on digital businesses and faster-growing regions. Catch Stone will form a separate network brand for Aegis Media in China, working alongside Aegis's other network brands of Carat, Vizeum, Isobar, iProspect and Posterscope."
The acquisition is subject to a four year earn-out structure, from 2013 to 2016, with further annual consideration payments being made during this period, dependent on the level of future profit growth achieved. The total consideration for the acquisition by 2016 is expected to be around RMB 949.4m (£95.2m).
The unaudited profit before tax of Catch Stone for the year ended December 31st was RMB 81m (£8.1m) and the value of the gross assets at that time was RMB 375.9m (£37.7m).
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