29 January 2016 – acquisition/placing
Marketing services group St Ives has announced the acquisition of The App Business Limited, a mobile led consultancy based in London. The business to be acquired specialises in strategy, product development and business transformation. In the year to 30 April 2015, the business generated revenues of £11.3m and EBITDA of £3.7m and St Ives is initially acquiring around 82% of the company for consideration of £22.3m. Of this £16.7m will be paid in cash with the rest satisfied by the issue of new shares in St Ives and the rest of the business will be acquired next month for £3.7m in cash and the issue of 0.6m new shares in St Ives. Further consideration of up to £27.8m may be payable depending on the performance of The App Business over the next three years. To help fund this, St Ives is raising £13.8m through a placing of 6.4m shares at 215p. The group has also confirmed that trading in the six months to 29 January is in line with expectations with revenues some 5% ahead of last year. The shares remain a BUY.