Porta Communications takes over peer PPS Group.
M2 EQUITYBITES-November 11, 2014-Porta Communications takes over peer PPS Group
(C)2014 M2 COMMUNICATIONS http://www.m2.com
11 November 2014 - UK communications and marketing solutions provider Porta Communications plc (LON:PTCM) said today in had completed the acquisition of domestic sector player PPS Group Limited for some GBP[pounds sterling]6.16m (USD9.77m/EUR7.87m).
The purchase price will be funded through GBP2.93m paid in cash and GBP850,000 in loan notes. The remaining GBP2.38m will be covered through the issuance of GBP0.10 Porta ordinary shares. The loan notes are redeemable 12 months after they are issued and have a 6% coupon.
PPS provides consultancy services in areas like reputation management, community engagement and political consensus building. The company has 45 employees, located in offices in London, Bristol, Manchester, Cardiff, Edinburgh and Aberdeen. In the 12 months leading up to 30 April 2014, PPS had assets of GBP2.67m and net current assets of GBP1.6m. Over the same period, it posted fee income of GBP4.65m and pre-tax profit of just over GBP706,000.
Following the acquisition, PPS will operate as Newgate PPS and will act as Porta's public affairs arm. The buyer's existing public affairs unit within Newgate Communications will be merged with Newgate PPS.
Porta's CEO David Wright commented that the transaction was in line with the company's long-term strategy to enhance operations across the entire marketing communications mix. In addition, PPS' strong presence in areas like Scotland would enable Porta to reach new customers and expand its geographic footprint.
((Comments on this story may be sent to firstname.lastname@example.org))
|Printer friendly Cite/link Email Feedback|
|Publication:||M2 EquityBites (EQB)|
|Date:||Nov 11, 2014|
|Previous Article:||Eastman reports pubic offering of USD2bn notes.|
|Next Article:||ShoreTel receives revised unsolicited acquisition proposal from Mitel.|