REG-Next Fifteen Comm AcquisitionReleased: 02/10/2009
http://www.businesswire.com/news/home/20091001006424/en
LONDON--(Business Wire)--
Next Fifteen Communications Group plc
Proposed acquisition of the trading subsidiaries of Upstream Marketing and
Communications Inc
Next Fifteen Communications Group plc ("Next Fifteen") announces that it has
entered into arrangements to acquire the marketing communications trading
subsidiaries of AIM-listed Upstream Marketing and Communications Inc. ("UPS")
(the "Transaction"). These businesses referred to here as "Upstream Asia" are
located in Beijing, Shanghai, Hong Kong, Singapore and Sydney and will be
integrated into Next Fifteen`s Bite Communications Group ("Bite"). The
Transaction is subject to approval from the UPS shareholders in general meeting
to be held on 26 October 2009.
The initial consideration will be US$0.9m paid in cash on completion of the
Transaction and the assumption of US$0.2 of UPS liabilities, for a total of
US$1.1m. Next Fifteen will own 55% of Upstream Asia, and a Hong Kong based
company called Asset Pioneer Limited will own the residual 45%. Next Fifteen
will enter into an option deed providing Next Fifteen with the right to acquire
Asset Pioneer`s shares over a five year period based on the profitability of the
acquired businesses. These businesses form the trading activities of UPS and
generated revenue of US$ 2.1m in the six months ended 30 June 2009. During this
period UPS recorded a net loss before tax of US$0.4m.
Next Fifteen`s net cash position at 31 July 2009 was £1.0m, which is £2.4m
better than market forecasts and the initial payment for this acquisition can be
comfortably accommodated within existing facilities. Next Fifteen will report
its preliminary results for the year ended 31 July 2009 on 20 October 2009.
Next Fifteen will provide a further update upon completion of the Transaction,
which is expected on or before 30 October 2009.
About Upstream Asia
Founded in 2000, Upstream Asia is a full service marketing and corporate
communications network positioned to help companies make the most of business
opportunities in the Asia Pacific region. Upstream Asia has offices in Beijing,
Hong Kong, Shanghai, Singapore, and Sydney, as well as regional affiliates. Key
practice areas include technology, corporate & financial, and consumer & travel.
Upstream Asia is currently owned by London AIM-listed company Upstream Marketing
and Communications Inc. (UPS.L). For more information, visit
www.upstreamasia.com.
About Bite Communications
Bite Communications, a subsidiary of Next Fifteen Communications Group plc, is a
140-strong communications consultancy with offices in London, San Francisco, New
York, Toronto, LA, Beijing and Stockholm. With a mission to deliver fearless and
boundless communications campaigns to its range of B2B and B2C clients, Bite has
built its business on developing creative, results orientated campaigns for
market-leading blue chip as well as fast growing emerging start-up brands. Its
client list includes AMD, BT, HP, Microsoft and Sony. For more information,
visit www.bitepr.com
About Next Fifteen
Next Fifteen Communications Group plc is the holding company for a group of
worldwide PR consultancies. It owns five independent subsidiary PR agencies that
operate as autonomous businesses. It also owns two research businesses and has
an investment in a policy communications business. Between them these businesses
have 39 offices in 18 countries. The Group has established itself as a leader in
digital public relations. The focus on digital PR comes naturally to the Group
given that the majority of the Group's clients are in the technology industry,
and include global names such as IBM, Yahoo!, Microsoft, Facebook and Cisco.
Over the last few years the Group`s strategy has broadened and to include
non-technology clients. This strategy was particularly helped by the acquisition
of Lexis Public Relations in 2005 and M Booth & Associates in August 2009. The
Group now works with brands such as American Express, Coca-Cola, Whirlpool,
TOTAL, Dove, Nokia and the Barclays Premier League. For more information, visit
www.nextfifteen.com
For further information, please contact:
Next Fifteen Communications Group plc
Tim Dyson, Chief Executive +1 415 350 2801
David Dewhurst, Finance Director +44 (0)20 8846 0771
Canaccord Adams Limited
Mark Williams +44 (0)20 7050 6500
Adria Da Breo Richards
Next Fifteen Communications Plc
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