LONDON (Alliance News) - Digital Globe Services Limited said Friday that it had acquired the education business unit of Ampush Media Incorporated for USD3.8 million.
Digital Globe Services provides customer-acquisition services. It said that it expects the acquisition of the education business unit to be earnings enhancing in its first full year of ownership. Digital Globe said it estimates the unit to have an underlying annualised pro forma earnings before interest, tax, depreciation and amortisation of USD400,000.
The acquired business provided lead generation in the education industry in the US, using paid search, call centres and social media advertising.
"We are delighted to complete our first acquisition since DGS joined AIM in February 2013," said Chief Executive Officer Jeff Cox in a statement. "This is a financially attractive, tuck-in acquisition that complements our organic growth strategies and accelerates our entrance into the education lead generation market in North America."
Digital Globe will pay USD1.5 million in cash and up to USD1.0 million in shares, from the issue of up to 266,678 new depositary interests over Digital Globe shares. The share-based payment will be in two tranches, with 50% paid immediately and 50% to be paid in March 2014 based on revenue targets for the education business being met.
In addition, a deferred cash payment of up to USD1.2 million will be paid in December 2014 or January 2015 based on revenue targets being met. Digital Globe also will pay Ampush USD100,000 to use the Ampush AMP 2.0 marketing platform.
Shares in Digital Globe were trading up 3.0% at 257.00 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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