29th January 2007
Cello extends its online market research offering by acquiring controlling interest in Rosenblatt and Digital People
Cello Group plc (Cello, AIM: CLL), the market research and consulting group has acquired a controlling interest in Rosenblatt Limited (‘Rosenblatt’) and Digital People Online Limited (‘Digital People’) for a total maximum consideration of approximately £3m in cash, loan notes and new ordinary shares.
Digital People is an online research business and Rosenblatt is a qualitative market research agency. Rosenblatt was established in 1995 by Jon Cohen and acts for a number of blue chip clients including BBC, Channel 4, Coors, Mitchells & Butler and UKTV.
Cello has acquired 75% of the issued share capital of Rosenblatt for a consideration of £322,000 in cash and the issue of 119,426 new ordinary shares. The remaining 25% is the subject of put and call options exercisable in 2009. The option consideration is payable in a mixture of cash, loan notes and new ordinary shares at Cello’s discretion.
Cello has also acquired 51% of the issued share capital of Digital People. The remaining 49% is the subject of a put option whereby Cello can be required to purchase the 49% interest at any time in the period to March 2012. The option consideration is payable in a mixture of cash, loan notes and new ordinary shares at Cello’s discretion.
Application has been made to the London Stock Exchange for the new shares to be admitted to AIM and it is expected that admission will take place by 2 February 2007.
Kevin Steeds, Cello Chairman, said:
‘Rosenblatt with its excellent client base, adds more depth to our consumer market research offer whilst Digital People further reinforces our on line capability. Both these operations fit well into our strategy of building a leading position in the research market.’