R4E.L Share News (R4E)

(Sharecast News) - Marketing communications group Reach4Entertainment will acquire advertising outfit Agency Press for a price that could rise to £10m.R4E will place 250m new ordinary shares of 1.2p each in order to raise up £3m to fund the acquisition of Agency Press, a London-based integrated agency trading as Sold Out.The consideration for the acquisition will be made up of an initial payment of £3.94m in cash and a further £250,000 made payable in the form 20.83m ordinary shares, while an additional deferred cash consideration based on the financial performance of Sold Out between 1 June 2017 and 31 December 2021 will also be payable.R4E said the aggregate of the initial consideration and the deferred consideration was capped at £10m.Sold Out specialises in arts and entertainment advertising and has established a strong reputation in its field over the past 25-years, building a portfolio of high profile clients like SJM Concerts, AEG Presents, Live Nation and Cirque Du Soleil.Chairman Michael Grade said: "The acquisition will mark a significant milestone for the group and play a major role in diversifying our client base beyond just theatre."Bringing Sold Out into the group will enable us to strengthen our entire marketing and advertising offering."As of 0845 GMT, R4E shares had picked up 2.80% to 1.28p.