CLL.L Regulatory News (CLL)

17 Sep 2007 07:01

Cello Group plc17 September 2007 17 September 2007 Cello Group plc Cello extends Response capability with the acquisition of Magnetic Cello Group plc ("Cello, AIM: CLL), the market research and consulting group hasacquired 100% of the share capital of Magnetic Advertising Company Limited ("Magnetic"), a specialist direct marketing support business. The initialconsideration consists of £1.25m, of which £0.55m is payable in cash and loannotes and the balance satisfied by the issue of 505,415 new Cello ordinaryshares. Further initial consideration of approximately £0.32m is expected to bepaid in cash and loan notes subject to verification of the net current assets ofMagnetic. In addition, there are further performance related considerationpayments of up to £2.75m payable by reference to the period to December 2010, ofwhich a minimum of 25% will be paid in the form of loan notes and the balance innew ordinary shares. For the year to 31 March 2007, Magnetic had turnover of £2.62m and operatingprofit of £0.48m. Net current assets acquired by Cello at completion areexpected to be approximately £0.57m including cash balances of approximately£0.40m. Application has been made to the London Stock Exchange for the new shares to beadmitted to AIM and it is expected admission will take place by 21 September2007. Mark Scott, Cello Chief Executive, said: "Response comprises approximately 25% of the Group's annual operating profit. Itis a dynamic, data based business benefiting from the shift of client spendtowards accountable, research based activity. Magnetic will strengthen ourposition with a range of existing and potential new clients in the UK." Enquiries: Cello Group plcMark Scott, Chief Executive 020 7812 8460 College HillAdrian Duffield/Rozi Morris 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 aportfolio of research and consulting businesses capable of advising blue chipclients globally. Cello has annualised turnover in excess of £100million, operating income inexcess of £50 million and employs approx 650 professional staff. This information is provided by RNS The company news service from the London Stock Exchange