Business consultancy Elixirr acquires Essex-based digital marketing firm
Thu, 29 Oct 2020 | BUSINESS SALE
Business consultancy Elixirr International has acquired the Essex-based digital marketing firm Coast Digital, in a deal that could rise to £3.8 million. The deal will see Elixirr pay an initial £2.2 million cash consideration, along with the issue of 444,752 ordinary shares of 0.005 pence per share.
Elixirr added that there will be potential earn out payments of new ordinary shares totalling £400,000. These are contingent on Coast Digital achieving underlying earnings targets for 2021 and 2022. An additional cash payment will also be made based on the working capital of Coast Digital upon completion.
Elixirr moved for Coast Digital, which employs 48 staff, as it looked to grow its existing digital capabilities and offer its clients a full-service digital capability. Elixirr forecasts the acquisition will immediately enhance earnings.
Stephen Newton, Chief Executive of Elixirr, said: "As our first acquisition post-IPO, today's announcement marks the next step in our ambitious growth plans and enables us to support clients in all aspects of digital - something more important than ever in the current market.”
"Coast Digital's expertise will be highly complementary to the quality service Den Creative already provides and their capabilities will be hugely beneficial to many of Elixirr's clients, while our strategy and innovation-led approach has the potential to assist Coast Digital's clients on broader strategic topics."
Coast Digital Chief Executive David Wharram said: "Very quickly from meeting the Elixirr team we saw huge similarities in the way we operate, our culture and appetite for growth.”
"The platform they can offer to our business is unique, and allows us to retain what has made Coast Digital the firm it is today, while dramatically expanding our potential market reach. We are excited to be starting this next stage of our journey."
According to Coast Digital’s most recent accounts, made up to the year ended April 30 2020, its fixed assets are valued at £45,705, while its current assets stand at £2.19 million, with net assets of £1.38 million.
In Elixirr International’s most recent accounts, for the year ended December 31 2019, it reported gross profit of £4.4 million on revenue of £13.1 million, with total comprehensive income of £1.1 million.
Its non-current assets amounted to £55.9 million, while current assets were valued at £8.9 million, with total assets standing at £64 million and net assets of £44.6 million.
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