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

How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021