CLL.L Regulatory News (CLL)

30 Mar 2007 07:01

Cello Group plc30 March 2007 30 March 2007 CELLO EXTENDS ITS HEALTHCARE MARKETING CAPABILITY WITH THE ACQUISITION OF MSI Cello Group plc ("Cello", AIM: CLL), the market research and consulting grouphas acquired The MSI Consultancy Limited ("MSI"), a leading healthcare marketingconsultancy. Initial consideration consists of approximately £5.7 million withfurther performance related consideration of up to a maximum of £7.5 million. MSI, which was established in 1994 acts for a number of blue chip clientsincluding Sanofi Aventis, Shire Pharmaceuticals and Pfizer. The initial consideration consists of approximately £5.7 million of which £3.9million is payable in cash or loan notes and the balance satisfied by the issueof 1,198,402 new ordinary shares. In addition, there are further performancerelated payments over the period to 31 December 2010. These further payments arein a mixture of loan notes and new ordinary shares at Cello's discretion, with aminimum overall loan note consideration of approximately 50% of the furtherconsideration. For the year to 31 May 2006, MSI had a turnover of £2.9 million, audited profitsbefore tax of £0.3 million and normalised profits before tax of £0.7 million.Net assets as at 31 May 2006 were £0.9 million including cash of £1.3 million. Application has been made to the London Stock Exchange for the new shares to beadmitted to AIM and it is expected that admission will take place by 5 April2007. Kevin Steeds, Cello Chairman, said: "MSI is an exciting addition to the Cello Group, bringing to us excellentupstream marketing consultancy capability in a key sector vertical. The skillbase of MSI complements our established international market research business,Insight." Stephen Highley, MSI Managing Director, said: "Cello offers us significant opportunity to accelerate the growth of MSI andprovide additional capability to enhance a number of services that healthcarecompanies need." Enquiries: Cello GroupKevin Steeds, Executive Chairman 020 7812 8460 College HillSara Musgrave 020 7457 2020 Notes to Editors (www.cellogroup.co.uk) Cello is a market research and consulting group that listed on AIM in November2004. The Group's strategy is to create value for shareholders by building a portfolioof research and consulting businesses capable of advising blue chip clientsglobally. Cello has annualised turnover in excess of £75million, gross profits of over £40million and employs approx 550 professional staff. This information is provided by RNS The company news service from the London Stock Exchange