12 August 2015 – acquisition

The acquisition of Otherside Inc. for a total consideration of £3.2m has been announced.  Otherside was founded in 2008 and specialises in online marketing, display media and affiliation, underpinned by its proprietary online marketing platform across a range of sectors. It generated revenues of £2.6m and profit before tax of £0.4m in its unaudited financial information for the financial year ended 31 May 2015.  This is a slightly surprising move in that any acquisition was more likely to be in the gaming sector.  However, there is a good strategic fit and we believe that the deal looks sensible.  We continue to rate the shares as a BUY.