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Acquisition

2 Feb 2010 07:00

RNS Number : 4995G
Adventis Group PLC
02 February 2010
 



2 February 2010

 

 

 

Adventis Group Plc

("Adventis", the "Company" or the "Group")

 

Acquisition

 

"Adventis Group plc acquires technology & telecoms channel sales & marketing consultancy"

 

 

Adventis Group plc ( "ATG"), the AIM quoted marketing services, media buyer and advertising agency, is pleased to announce the acquisition of bChannels Limited ("bChannels"), a technology & telecoms channel sales & marketing consultancy based in Oxfordshire, for an initial consideration of GBP738,333.

 

Adventis' strategy is to focus its marketing and media buying services on specialised sectors, to date: healthcare, technology & telecoms, media and property in which it has built significant market positions. Technology & telecoms is seen as a major growth area and bChannels together with Second2, the existing Adventis marketing agency, are expected to generate significant future profits. The rapid growth of the technology sector continues and the services required in marketing computer hardware, software and telecoms equipment, both to end-users and through channels, require very specialised knowledge generating a high margin and with significant barriers to entry.

 

bChannels has enjoyed considerable success since it was founded in 2006 by Matt Rowland-Jones, Phil Gowing and Chris Bard. All three founders, who will stay with the Company following the acquisition, have extensive experience across the technology & telecoms industries, and have built a channel sales & marketing consultancy that plans and executes optimal channel sales and marketing solutions and delivers excellent customer service whilst providing deep knowledge of these industries. For the year ended 31 December 2009, bChannels reported audited turnover of GBP2.578 million and pre-tax profits of GBP0.435 million. Net assets at that date amounted to approximately GBP0.306 million. The acquisition will be immediately earnings enhancing for Adventis.

 

bChannel's clients include Xerox, Symantec and Samsung. bChannels core service offer is the development of indirect channel programs for technology clients. The company specializes in:

 

·; Channel Engagement: development and optimization of indirect channel programs;

·; Partner Programmes: ongoing outsourced management of channel partner relationships;

·; Channel sales: channel partner profiling, recruitment and demand creation activities.

 

This extension of the Group's technology & telecoms services will significantly bolster the Group's digital offering as a whole. bChannel's 24 staff are currently located in Oxford but some will relocate to Adventis' offices in Beaconsfield and will work closely with Second2.

 

The total maximum potential consideration of GBP4.5 million will be satisfied by the payment of an initial consideration of GBP738,333 payable as to GBP705,000 in cash and GBP33,333 by the issue of 193,796 new ordinary shares in Adventis ("New Ordinary Shares"). Further deferred consideration of up to GBP3.76 million will be paid evenly over the four years following the acquisition subject to the profits generated by bChannels in each year. Each deferred consideration tranche will be satisfied as to 75 per cent in cash and the balance payable in new ordinary shares in Adventis.

 

Application has been made for the admission to trading on AIM of the New Ordinary Shares, which will rank pari passu with the Company's existing issued ordinary shares. Dealings in the New Ordinary Shares are expected to commence on 5 February 2010. The number of Shares in issue (excluding treasury shares) following the above, and the figure to be used as the denominator for calculations of interests in the Company's voting rights is 47,332,314 Shares.

 

Commenting on the acquisition of bChannels, Charles Phillpot, CEO of Adventis said:

"Our strategy of increasing our market share in the Technology and Healthcare sectors continues as the Board believes these are the most robust sectors with the highest growth potential. bChannels almost perfectly complements our existing presence in the Tech market and also gives us a foothold in the US, crucial for access to Tech clients. This is an important addition to the Group in both strategic and financial terms and will offer many opportunities for cross-selling."

 

Matt Rowland-Jones of bChannels said:

"We are very pleased to have found in Adventis a partner which shares our ethos, values and passion for what we do. Adventis will enable us to retain the unique elements that have made bChannels one of the most successful technology & telecoms sales & marketing consultancies in the UK, and will also provide us with significant additional capabilities and resources."

 

END

 

Enquiries:

 

 Adventis Group Plc

 Charles Phillpot, CEO Tel: 020 7034 4750/07768 242058

 Peter Linnell, Finance Director Tel: 020 7034 4795/07764 156091

 

 Peckwater PR

 Chris Steele Tel: 07979 604687

 Tarquin Edwards Tel: 07879 458364

 

 Arbuthnot Securities

 Tom Griffiths Tel: 020 7012 2000

 

Notes to Editors

 

Adventis Group plc is an AIM-listed full service multimedia marketing and advertising agency to the healthcare, technology & telecoms and property industries.

 

Adventis's strategy is to focus its marketing and media buying services on these sectors, in which it has the opportunity to build significant market positions.

 

There are three main strands to Adventis' strategy to develop the business:

 

* Consolidation of its position in its chosen business sectors which are predominantly serviced by a large number of small operators;

* Diversification into other specific sectors which have a requirement for a higher level of expertise;

* Maintain/increase profit margins which are amongst the strongest in the industry.

 

Management intends to achieve these objectives through a mix of organic development, acquisitions and by creating structures to attract new senior people with proven revenue earning ability and appropriate sector expertise.

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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