REG-Next Fifteen Comm AcquisitionReleased: 20/10/2009
LONDON--(Business Wire)--
Next Fifteen Communications Group plc
Acquisition of Additional 30% Stake in 463 Communications
Next Fifteen Communications Group PLC ("Next Fifteen"), the holding company for
a group of global public relations consultancies, announces today that it has
agreed to acquire an additional 30% stake in 463 Communications LLC ("463"), a
corporate communications consultancy that provides senior-level counsel that
help their clients create and execute issues-based campaigns that are
disciplined and measurable. The business operates out of the US in Washington DC
and Palo Alto.
The increased stake in 463 has been acquired from Tom Galvin, Jim Hock and Sean
Garrett on a pro rata basis. The 30% purchase was valued at $2.1m with $1.4m to
be paid in cash and the remainder to be paid in Next Fifteen shares. Next
Fifteen continues to have an option to purchase the remaining 30% from the
partners over the next several years as part of the buy/sell agreement executed
in 2006. This acquisition increases Next Fifteen`s ownership in 463 to a
majority position with a 70% stake. All three partners will remain with the
business.
463 was created as a startup consulting business in 2005. In 2006, a partnership
agreement was formalized whereby the 3 partners were granted a 60% equity stake
and Next Fifteen held the remaining 40% of the equity. As a result of the strong
growth and profitability of the business, 463 is now valued at $7m. As a result,
Next Fifteen has acquired this stake of 30% for $2.1m, which equates to the
total investment made in 463 over the life of the business.
For the year ended 31 July 2009, 463 had generated revenues of $3.79 million and
profit before tax of $0.96 million.
The three existing partners and Next Fifteen entered into this partnership in
2006 and have witnessed continued strong revenue and profit growth since then
and see excellent opportunities to continue to expand the business.
Tim Dyson, Chief Executive of Next Fifteen, said: "463 has been a valuable
addition to the Next Fifteen family. Our collective vision when we formed this
business was to create a high level consulting business, staffed by experienced
practitioners who could consult on corporate and public policy issues affecting
the technology industry. Three and half years later they have delivered on that
vision and are playing an important role in helping major technology companies
and industry bodies get their messages across to the relevant policy makers and
business decision makers."
For further information, please contact:
Next Fifteen Communications Group
Tim Dyson, Chief Executive
001 415 350 2801
David Dewhurst, Finance Director
07974 161183
Bite PR
Liam Jacklin
020 8735 9727
liam.jacklin@bitepr.com
Elijah Lawal
020 8735 9718
elijah.lawal@bitepr.com
Canaccord Adams
(Nominated Adviser)
0207 050 6500
Mark Williams / Henry Fitzgerald-O`Connor
Next Fifteen Communications Plc
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