Acquisition

25 Jun 2007 07:02

Ten Alps PLC25 June 2007 Press Release 25 June 2007 Ten Alps plc ("Ten Alps" or the "Group") Acquisition of factual media advertising sales business Mongoose Media Ten Alps Plc (AIM: TAL), the factual media company, announces the acquisition ofMongoose Media Ltd ('Mongoose'), a business which sells advertising in factualmedia, for a maximum cash consideration of £3.4m. Mongoose sells advertising across specialist print and digital media on behalfof associations and institutions. Based in London, it has 19 staff. Its 25clients range from international titles such as Newsweek, National Geographicand Time Out, to specialist organisations such as The Multiple Sclerosis Societyand the National Childbirth Trust. Mongoose's adjusted 2006 EBIT (earnings before interest and taxation) for theyear ended 27 December 2006 was £448,000, on gross revenues of £5.2m. The netassets at 27th December 2006 were c.£95,000. The multiple paid on the acquisition, assuming the maximum earnout considerationis paid, represents 4.7 times projected EBIT. The acquisition is funded bydebt. An initial payment of £1.65m was made, for anticipated net assets of £100,000,with a £ for £ adjustment on agreement of the completion accounts. A possiblefurther payment of up to £1.45m will be made on achievement by Mongoose of EBITof £725,000 in the first 12 months, with a threshold for this earnout beginningat EBIT of £300,000. Over the two years following the initial 12 month period,up to a further £300,000 will also payable against the performance of certainclient contracts. Mongoose will be run as an autonomous business within the CommunicationsDivision of Ten Alps, with existing management to ensure continuity and thepotential to maximise growth. Richard Beatty, Director of Mongoose, said: "This is great news for both ourclients and staff. Mongoose will continue to provide and develop the excellentstandards that our customers expect from us, whilst broadening the range ofservices we can offer as a new part of the Ten Alps group." Alex Connock, Chief Executive of Ten Alps Plc, said: "Mongoose and its young,talented sales team bring us considerable added firepower in advertising sales -a key constraint to organic growth in specialist factual media. The team alsohave an excellent client list and track record of profitability. We're lookingforward to seeing even more of what they can do." - Ends - For further information, please contact:Ten Alps plcAlex Connock, CEO Tel: +44 (0) 20 7878 2311 c/o Moira McManus www.tenalps.com Collins Stewart, Nominated AdviserChris Wells / Mark Connelly Tel: +44 (0) 20 7523 8350 www.collins-stewart.com Media enquiries:Abchurch CommunicationsHeather Salmond / Gareth Mead / Joanne Shears Tel: +44 (0) 20 7398 7700Joanne.shears@abchurch-group.com www.abchurch-group.com Notes to Editors This is Ten Alps' fourteenth acquisition since listing on AIM in July 2001 byreverse takeover. Ten Alps is a factual media company providing content for TV, radio, online TVand print, plus managing related commercial opportunities. Ten Alps targets content to every outlet that audiences, customers andadvertisers engage with - making it entirely cross-platform. This year Ten Alps is producing over 500 publications and scores of TV and radioprogrammes. It has invested in and launched 12 online TV channels. Ten Alps' strategy is to migrate specialist media to online TV, retainingconsumers on both sides of the online-offline divide as choice widens andaudiences fragment. Growth has come through strategic acquisitions and cross selling between mediachannels. When Ten Alps launched on AIM in 2001 it had revenues of under £2mand 10 staff. It now employs over 570 people in three divisions: broadcast,digital and communications. With headquarters in London, Ten Alps also has major offices in the North-Westand Scotland. This information is provided by RNS The company news service from the London Stock Exchange