Acquisition
Ten Alps PLC
25 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 of
Mongoose Media Ltd ('Mongoose'), a business which sells advertising in factual
media, for a maximum cash consideration of £3.4m.
Mongoose sells advertising across specialist print and digital media on behalf
of associations and institutions. Based in London, it has 19 staff. Its 25
clients range from international titles such as Newsweek, National Geographic
and Time Out, to specialist organisations such as The Multiple Sclerosis Society
and the National Childbirth Trust.
Mongoose's adjusted 2006 EBIT (earnings before interest and taxation) for the
year ended 27 December 2006 was £448,000, on gross revenues of £5.2m. The net
assets at 27th December 2006 were c.£95,000.
The multiple paid on the acquisition, assuming the maximum earnout consideration
is paid, represents 4.7 times projected EBIT. The acquisition is funded by
debt.
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 possible
further payment of up to £1.45m will be made on achievement by Mongoose of EBIT
of £725,000 in the first 12 months, with a threshold for this earnout beginning
at 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 certain
client contracts.
Mongoose will be run as an autonomous business within the Communications
Division of Ten Alps, with existing management to ensure continuity and the
potential to maximise growth.
Richard Beatty, Director of Mongoose, said: 'This is great news for both our
clients and staff. Mongoose will continue to provide and develop the excellent
standards that our customers expect from us, whilst broadening the range of
services 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 also
have an excellent client list and track record of profitability. We're looking
forward to seeing even more of what they can do.'
- Ends -
For further information, please contact:
Ten Alps plc
Alex Connock, CEO Tel: +44 (0) 20 7878 2311
c/o Moira McManus
www.tenalps.com
Collins Stewart, Nominated Adviser
Chris Wells / Mark Connelly Tel: +44 (0) 20 7523 8350
www.collins-stewart.com
Media enquiries:
Abchurch Communications
Heather Salmond / Gareth Mead / Joanne Shears Tel: +44 (0) 20 7398 7700
Joanne.shears@abchurch-group.com www.abchurch-group.com
Notes to Editors
This is Ten Alps' fourteenth acquisition since listing on AIM in July 2001 by
reverse takeover.
Ten Alps is a factual media company providing content for TV, radio, online TV
and print, plus managing related commercial opportunities.
Ten Alps targets content to every outlet that audiences, customers and
advertisers engage with - making it entirely cross-platform.
This year Ten Alps is producing over 500 publications and scores of TV and radio
programmes. It has invested in and launched 12 online TV channels.
Ten Alps' strategy is to migrate specialist media to online TV, retaining
consumers on both sides of the online-offline divide as choice widens and
audiences fragment.
Growth has come through strategic acquisitions and cross selling between media
channels. When Ten Alps launched on AIM in 2001 it had revenues of under £2m
and 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-West
and Scotland.
This information is provided by RNS
The company news service from the London Stock Exchange
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