Porta Communications PLC ("Porta" or the "Company") is pleased to announce the acquisition of 90 per cent. of the issued share capital of Twenty 20 Media Vision Limited ("Twenty 20"), a full service media planning and buying agency based in Tunbridge Wells, for a maximum consideration of £1.9 million. †Since Twenty 20's inception in 2009, the company has grown to become a significant agency of its kind in the UK, with a strong client base from a range of sectors, such as entertainment, luxury, retail and healthcare; including Carpetright, Fat Face, Raymond Weil Watches, Wren Kitchens and Gieves and Hawkes.
This acquisition is in line with Porta's stated strategy for expanding its presence in the advertising and marketing space.† †The company reported net current liabilities of £180,791 in the filed Abbreviated Accounts for the year ended 30 September 2011.
The maximum consideration payable will be linked to profits generated by Twenty 20 over the next full year. †The initial consideration of £370,000 will be satisfied by the payment of £40,000 in cash and the issue of 3,300,000 new ordinary shares of 10p each in the capital of the Company ("Ordinary Shares").† Additionally, deferred consideration of up to £1,530,000 will be payable subject to Twenty 20 generating profits before tax for the year to 30 September 2013 of in excess of £500,000. †The maximum deferred consideration will be satisfied by the payment of up to £300,000 in cash and the balance via the issue of new Ordinary Shares. †If profits fall below £500,000 then the consideration will be scaled back on the following basis: for every £50,000 shortfall in profit, the consideration will be reduced by £190,000 in the same cash to shares ratio as the maximum deferred consideration (being approximately 20 : 80), by such a factor until only the initial consideration is payable.
Porta Chief Executive, David Wright stated that: "Twenty 20 represents another key element in the Porta business plan.† It not only represents the first significant development by Porta in the advertising space, but also provides the Group both the management expertise and market presence to further develop its plans for the sector.† We are looking to build on this strong base with further acquisitions in the near future."
Bill Jones, Managing Director of Twenty 20 commented: "Joining the Porta group presents the Twenty 20 team with the opportunity to fast track the next crucial stage of our growth plan. We will continue to expand both our media and creative client portfolios with particular emphasis on the retail and luxury goods sectors."
Porta Communications plc, the international marketing and communications business, is led by David Wright, Chief Executive and Chairman. David is well known for establishing Citigate in late 1988. In 1997 he reversed Citigate into Incepta plc and David became Chief Executive of the enlarged Group, later becoming Chairman. By 2003, when David left Incepta, he had built one of the largest international financial communications companies in the world, through a series of key acquisitions and an active recruitment programme. Prior to Citigate he was Managing Director of Streets Financial Strategy from 1986 to 1988. David began his career as a journalist.
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