St Ives acquires Branded3 Search

Marketing firm St Ives has acquired Branded3 Search, a search engine optimisation and digital marketing agency.

Marketing firm St Ives has acquired Branded3 Search, a search engine optimisation and digital marketing agency.

The company said that the acquisition of Branded3 represented a continuation of St Ives's strategy to create a complementary range of digital and marketing services that would enable the group to add further value to existing and new clients.

In the financial year ended January 31st 2013, Branded3 generated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £1.7m on revenue of £4.1m. Gross assets were £3.0m.

St Ives said that it had agreed to acquire all of the issued share capital of Branded3, on a cash and debt free basis, for £10.7m, to be satisfied by approximately £8.6m in cash and approximately 1.4m of newly issued St Ives shares.

It said that a further consideration of up to £14.3m could be payable to be satisfied approximately 75% in cash and 25% in shares dependent on incremental financial performance for the years ending January 31st 2014, 2015 and 2016.

Branded3 is to operate as a subsidiary of St Ives and will continue to be managed from its current locations by its existing management team.

Patrick Martell, Chief Executive Officer of St Ives, said: "With the acquisition of Branded3 we are adding significant depth to our digital offering and further enhancing the range of marketing services we can provide for our existing and prospective clients."

He added: "Our combination of insight led innovation and trusted execution across digital and physical media creates a unique integrated offering in the market, which this acquisition complements well. I am delighted to welcome the Branded3 team to the group and look forward to supporting their growth plans."

Branded3's Chief Executive Officer Vin Chinnaraja, said: "We have achieved another major milestone in our growth plans and becoming part of a synergistic, forward-thinking group where there is huge potential for collaboration is a real boost for us. I am really looking forward to working with the St Ives team to fulfil our ambitious plans."

St Ives's share price was up 2.48% to 155.25p at 12:25 on Thursday.

MF

Recommended

Imperial Brands has an 8.3% dividend yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% dividend yield – but what’s the catch?

With an impressive dividend yield of 8.3%, Imperial Brands looks to be one of the most attractive income stocks in the FTSE 100 . But investors should…
6 Jul 2022
Can Royal Mail continue to deliver its 7.6% yield?
Share tips

Can Royal Mail continue to deliver its 7.6% yield?

Royal Mail shares are yielding 7.6% this year. But it’s facing some huge challenges, says Rupert Hargreaves. So is Royal Mail’s dividend sustainable?
6 Jul 2022
Saga’s figures are heading in the right direction – so should you buy?
Share tips

Saga’s figures are heading in the right direction – so should you buy?

Saga the over-50s travel and financial services specialist, has been struggling for years. But now, with the pandemic behind, it it is planning for fu…
5 Jul 2022
Director dealings w/e 1 July: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 1 July: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
5 Jul 2022

Most Popular

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks
European stockmarkets

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks

Ray Dalio’s Bridgewater hedge fund is putting its money on a collapse in European stocks. It’s likely to pay off, says Matthew Lynn.
3 Jul 2022
Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Is inflation about to drop as recession takes hold?
UK Economy

Is inflation about to drop as recession takes hold?

Central banks are raising interest rates in an attempt to curb soaring inflation. But will that push the economy into recession? John Stepek looks at …
5 Jul 2022