Last checked at 22 May 2014 07:00
Parity Group plc ("Parity" or the "Group")
Parity announces the strategic acquisition of Golden Square
Parity Group plc, the AIM-listed UK IT Services Group, today announces it has acquired for total cash consideration of less than £0.5m the business and assets of Golden Square Post Production Limited ("Golden Square") from its administrator. Golden Square is a London-based post-production and international content distribution business.
The business will continue to trade as Golden Square through a new, wholly owned subsidiary of Parity Digital Solutions ("PDS"), a division of the Group. Golden Square will sit alongside Inition (PDS's 3D Technology business) and the Systems IT Solutions business. The founders of Golden Square, Phil Gillies and Alan Young, will continue to lead the business.
PDS Chairman Andy Law and CEO Mark Andrews joined Parity recently to lead the Group's digital technology communications strategy. Together with PDS COO Zahur Amin they are working closely with Golden Square to improve efficiency and expand marketing and sales capability. Golden Square generated revenues of £3.5 million for the year ended 30 April 2013 but experienced constrained cash flow after failing to renew a significant contract in 2013.
The PDS management team has already implemented costs saving measures at Golden Square. With further investment the Board of Parity expects to return Golden Square to monthly profitability before the end of the year and for the business to contribute fully from 2015.
Golden Square Founder, Phil Gillies, commented: "We are incredibly proud to become part of the Parity Group. This partnership will help us make the most of our existing offering and continue to provide a high quality service to our existing clients, whilst also giving us a fantastic opportunity to expand into other areas."
Mark Andrews, CEO of PDS said: "We are delighted that Golden Square has become the newest addition to Parity Digital. It is a prestigious brand in the VFX marketplace and one that fits the vision we have for the growth of the business."
Parity Group Chairman, Philip Swinstead, added: "We are developing the Group into a broader technology company through organic growth and targeted acquisition. This acquisition, together with Systems and our earlier purchase of Inition, provides a sound initial skill base and market presence for our technology communications ambitions."
Enquiries:
Parity Group PLC 0845 873 0790
Philip Swinstead, Chairman, Parity Group
Andy Law, Chairman, Parity Digital
MHP Communications 020 3128 8100
John Olsen
Ben Griffiths
Investec Bank PLC 020 7597 5970
Andrew Pinder
Patrick Robb
Dominic Emery