Communications group Next Fifteen Communications Group PLC (AIM:NFC) said its subsidiary, Mach49, entered a five-year strategic alliance worth more than $400m and also agreed to cap its earn-out at $300m.
Under the alliance, Mach49 will help launch a series of “innovation-led, technology-driven, sustainable ventures across the world” with an unnamed global technology and digital company, a statement said.
“Since Mach49 joined the group 18 months ago, they have significantly exceeded our expectations, and this latest client win is testimony to their success in working with global companies focused on venture building and venture investing to drive innovation and growth,” said Tim Dyson, chief executive officer of Next 15.
Revenues for the first year are expected to be around $50m.
In a separate statement, Next 15 said Mach49 agreed to cap its performance-led earnout at US$300mln.
Acquired in March 2020, Mach49’s earnout is based on earnings before interest and taxation generated up to January 2025, payable between 2023 and 2027, mostly in cash.
Next 15 lifted its full-year guidance in December after strong growth across the group’s four areas of business.
Next 15 shares rose 4.93% to 1180.46p in early deals.