reach4entertainment enterprises plc (LON:R4E), which is chaired by former BBC controller Michael Grade, said it's buying the company that owns the Sold Out advertising agency funded by a £3mln share placing.
Marketing communications specialist reach4 is stumping up an initial £3.94mln to the owners, though deferred payments could take the figure to £10mln. It said the deal will be “substantially earnings enhancing” during the first full year.
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Sold Out’s last annual accounts showed it generated a pretax profit of £1.3mln.
“The acquisition will mark a significant milestone for the group and play a major role in diversifying our client base beyond just theatre,” said chairman Grade.
“Sold Out has built an excellent reputation within the entertainment sector and has a high-quality, long term client base to match.
“It has delivered many successful campaigns across live music, festivals, sports and events, which are all areas where r4e is seeking to move in to.
“Bringing Sold Out into the Group will enable us to strengthen our entire marketing and advertising offering."